Riverside County passes on $700,000 renewable energy development grant

It’s rare for any county in California to turn down the opportunity to score $700,000 in state grant money to help update its general plan or other renewable energy permitting regulations, but that appears to be what Riverside County has done.

A request for proposals issued March 11 announced up to $7 million in state money available to counties “to fund plans for the development or revisions of rules and policies that facilitate the development of eligible renewable energy resources, and their associated electric transmission facilities, and the processing of permits for eligible renewable energy resources.”

The deadline for applications was April 10, and five counties applied, San Bernardino, Los Angeles, Inyo, Imperial and San Luis Obispo.  All have tentatively been awarded funds, ranging from $603,000 to $700,000 — the maximum amount available to anyone county – according to an announcement released April 25.

I checked in with Andrew Ferrin, the grants and loan officer at the Energy Commission, who confirmed that Riverside County did not submit an application for the money. I also asked if, given that less than half of the available $7 million had been awarded if there would be subsequent opportunities to apply for the money.

He was unsure. The law under which the money was offered was for the 2012-2013 fiscal year, he said.

I am waiting to hear from Riverside County officials on why they didn’t submit an application. As some of you may remember, the county has spent more than $869,293.15 on implementing its regulations on solar permitting — including its $450-er-acres solar fee passed in November of 2011.

All of the funds spent to date have come from a $600,000 per year solar franchise fee it is receiving from the 550-megawatt Desert Sunlight project now under construction on public land in the eastern county.

First Solar employees work on putting up the steel posts and rails to support solar panels on Nov. 29, 2011 in Desert Center.At least some of that money was supposed to go to the tiny town of Desert Center, located a few miles from Desert Sunlight and very much feeling the impacts of solar development.

Instead, county officials have dedicated the Desert Sunlight money to implementing the solar fee policy and defending it against a law suit two solar industry groups filed against it in February 2012.

Given that, it may be the county just didn’t have any use for the money. Another county missing from the tentative awards list is Kern County, which developed its own solar policies without having to dip into any fees it has raised from solar developers, all of which are earmarked for specific uses in the county.

In the meantime, I will be heading out to the east county on Thursday for a media tour of both Desert Sunlight and the 250-megawatt Genesis solar project, both owned by NextEra Energy and both located on public land in the Riverside East solar zone between Joshua Tree National Park and the city of Blythe.

 

The U.S. solar market: mixed views

GreenTech Media held its Solar Market Insight Conference Monday and Tuesday in San Francisco, bringing together major players in residential, commercial and utility-scale solar to track the trends in the U.S. solar market at present and going forward.

Many of the panels and presentations are still available online for techno-geeks like me who couldn’t make to SF.

The GreenTech outlook is decidedly mixed – the residential solar market will continue booming through the end of the year, but could slow in 2013 and beyond.

– U.S. solar installations are expected to hit 3.2 gigawatts this year, a 71 percent spike over the 1.9 gigawatts installed in 2011. Next year growth could slow, with installations projected to grow to 3.9 megawatts, or about 22 percent.

– Solar leasing companies continue to claim an increasing slice of the residential market.  In California, leased residential systems accounted for 10 percent of residential installation; as of the second quarter of the year, they now make up more than 70 percent. In Arizona, the figure is more than 80 percent.

– On the utility-scale side — projects 50 megawatts and up — the picture is more complicated. Shayle Kann, GreenTech’s vice president of research, reported that the U.S. has about 2.2 gigawatts of utility-scale projects in operation, with another 4 gigs in construction and close to 6 more gigawatts in the pipeline for 2016-17.

The question is how many of the projects not in construction or in earlier stages of development will make it.

“If you don’t have a PPA, it’s harder and harder to find one,” Kann said, referring to power purchase agreements developers negotiate to sell power to utilities, which are critical to getting a project financed.

The trend is toward smaller-scale projects and much lower prices being offered on PPAs, he said. 9.7 gigawatts in the pipeline. Only utilties in states with renewable energy portfolios, such as the 33 percent mandate in California, are showing any appetite for large projects, Kann said.

– One issue hanging over both residential and utility scale is the sunsetting of the 30 percent federal investment tax credit at the end of 2016. The credit has been key to the growth of solar leasing and utility-scale financing — it draws in investors that need a healthy income tax credit.

As it stands now, at the end of 2016, it will go down to 10 percent and especially for utility scale solar, that prospective drop is already having an impact as developers look at the timelines for big projects.

These trends could have significant effects for solar development in eastern Riverside County, for projects on public and private land.

Can NextEra Energy get the 1,000-megawatt Blythe project – which it bought from the bankrupt Solar Trust of America — repermitted, financed and in construction by the end of 2016? Ditto BrightSource Energy and the 500-megawatt Palen project it bought from Solar Trust, along with its Sonoran West project, one of the two contracts the California Public Utilities Commission approved last week.

BrightSource officials have said they don’t expect Sonoran to come online till 2017, and they have no definite timeline for Palen.

The Coachella Valley, and surrounding areas, have looked to large solar projects as a source of good jobs for the region’s still struggling construction workers. The federal guidelines for solar development in the 148,000-acre Riverside East solar zone, between Joshua Tree National Park and Blythe, envisions 80 percent of the area covered with projects.

Whether any of that will pencil out now appears uncertain.

Environmental advocates have always argued that for solar, smaller rooftop and community projects are the better play, and the market may just prove them right.

 

Solar thermal fights back; FedEx expands its electric fleet

Every day, 5,000 times more energy shines down on the Earth from the sun than it takes to power the entire world.

That enlightening factoid comes to us today from the solar industry’s newest trade group, the Concentrating Solar Power Alliance. CSP, as it is called in the industry, is what most of us call solar thermal — where panels or troughs collect or concentrate heat from the sun, which is then used to heat a liquid, create steam and run a generator.

Large-scale solar thermal projects have had a tough time in the past year, what with the pressure from falling photovoltaic panel prices and permitting challenges related to how much water they use.

In the Riverside East solar zone, the public land east of the Coachella Valley, three of the first four fast-track projects were originally solar thermal — Solar Millennium’s Blythe and Palen projects and NextEra Energy’s Genesis project.  As most local readers are aware, both Blythe and Palen are now on hold, presumably being retooled as PV plants by their new owner, solarhybrid.

Only the 250-megawatt Genesis project, now under construction, has remained solar thermal, and NextEra’s next project planned for the region, the 750-megawatt McCoy plant, is PV.

BrightSource, one of the three solar thermal companies behind the new organization, also has a local solar thermal project in the works, the 750-megawatt Rio Mesa plant on private land near Blythe.

Making the world a little more welcoming to solar thermal is where the new group comes in, building on the efforts of a new international organization, the World Solar Thermal Electricity Association. Both groups are clearly aimed at promoting the benefits of solar thermal technology to energy markets. 

While more expensive upfront, the alliance says that solar thermal plants are much more reliable than PV projects and produce power that can be stored to match peak energy demands.  Another plus, they can keep operating even when the sun is not shining. 

Solar thermal also produces more construction and permanent jobs than PV plants.  A 2006 study commissioned by the U.S. National Renewable Energy Lab for the Department of Energy found that a 100 megawatt solar thermal plant creates more than $600 million in impact to gross state output, ten times that of a fossil fuel plant due to the local content and job creation.

With PV clearly the technology of choice right now, and panel prices continuing to move toward grid parity — it will be interesting to see  how CSPA will market itself and its projects.

In other breaking green tech news today, Smith Electric Vehicles of Kansas City, Mo.,  unveiled a new all-electric truck that FedEx will be adding to its fleet throughout the rest of the year.

FedEx put its first all-electric vehicles on the road in Los Angeles in March 2010.

The new FedEx electric vehicles will have a range of 100 miles on a single charge.

 

 

 

 

 

 

 

 

 

The new trucks will have a range of about 100 miles on a single charge, which makes them ideal for urban delivery routes.  Don’t know if we’ll see any in the valley, but hats off to FedEx for its ongoing efforts.

Solar studies: The good, the bad, etc.

I’m not sure if it’s election year posturing – the renewable energy industry is lobbying Congress heavily to preserve key financial incentives such as the production tax credit – or a push back from the Solyndra bankruptcy, but it seems barely a day goes by without some solar study landing in my email box.

What’s clear is that advocates for solar and the green economy in general are positioning the sector as a job creator that, in California, is growing faster than other traditional industry sectors. How good or effective the studies are depends on how closely they reflect what’s really going on –- and provide useful information –- rather than trying to oversell the impact of green jobs or manipulate public perceptions.

In the latter category, we have a study released Thursday — with support from Vote Solar, a nonprofit promoting local policies that increase the number of solar installations — billed as a survey of public attitudes toward solar development.

What I found instead is a poll funded by a major solar corporation, BrightSource Energy, with softball questions designed to elicit desired answers.

Case in point, the first question in the poll asked participants if they  agree or disagree with the following statements:

“California’s deserts are a great resource. We should use parts of them to develop renewable energy projects. “

No surprise, 78.6 percent of respondents agreed, while only 15.6 percent disagreed and 5.8 percent were unsure or refused to answer.

Wonder what the answers would have been if the question had been phrased as follows:

“California’s deserts are a great resource, with incredible visual vistas and habitat for endangered and unique desert plants and animals. Should we put thousands of solar panels there or on previously disturbed land?”

Yes, that’s a loaded question looking for a specific answer, but serves the point.

The irony here is that of the major solar developers, BrightSource has been one of the few to place some of its projects on previously disturbed land – like the company’s 750-megawatt Rio Mesa project now in the works on private land near Blythe.

The study also tries to tip the balance of public opinion by linking solar development with the creation of “thousands of local construction jobs for two to three years, and . . . between 80 to 100 permanent operations and maintenance jobs.” Respondents were then asked if knowing that makes them more or less likely to support large-scale solar.

Once again, 73.4 percent came down on the more likely side, 10.5 percent less likely, 8.6 percent no difference and 7.5 percent unsure or refusing to answer.

Time for a reality check here — and another, more realistic study on solar industry jobs, from the Centers for Excellence, a research and analysis outfit that provides California’s community colleges with information aimed at aligning curriculum and programs with job market needs.

Also released Thursday, this study is based on surveys and interviews with large and small solar companies across the state, along with analysis of relevant community college programs.  The good news here is that solar jobs have been growing faster than the general job market.

The study found that the state’s 2,000 solar firms employ around 50,000 workers, with another 18,000 jobs expected by 2015 — a healthy 36 percent increase.  But, the study’s breakdown by region found Southern California growth rates lower, with 8 percent growth projected for 2012 and 19 percent by 2015.

Other sobering findings — for large-scale solar projects, contractors often bring in their own crews from out of state — as has happened at NextEra Energy’s Genesis project, a 250-megawatt solar thermal plant about half way between Desert Center and Blythe. 

When Desert Sun photographer Richard Lui and I visited the site last week, one of the first things we noticed was that almost all the pick-up trucks on site had Minnesota license plates, cause that’s where the general contractor is headquartered.  We were told about 50 people on the site were from Minnesota — though some had brought their families out and are now living here — and the balance of workers on the site came through union hiring halls in Riverside and Orange County. 

Another nifty factoid, solar installers tend to hire skilled trades people — electricians, roofers and plumbers – with solar skills, along with specifically trained solar installers.  No surprise then that many students in College of the Desert’s solar training programs have been unemployed construction workers, and that the class prepares them to pass the basic certification test of the North American Board of Certified Energy Practitioners — aka NABCEP — a strong resume point for solar installers.

But along with installers, the job categories people will need training for in solar may be more in sales, system design and administration, the study found.

Moving to the green job market statewide, Next 10, another nonprofit, released its employment survey, called “Many Shades of Green” earlier this week.  What’s good about this study is that it looks not only at what the group calls the core green economy — such as jobs directly related to renewable energy, energy-efficiency and recycling — but also the secondary, adaptive green economy, which includes businesses that are going green, asking their vendors for greener products or coming up with more sustainable business practices.

The major drawback to this study is that its figures are about two years old — providing job stats only up to 2010. Like the rest of California’s economy, the green sector took its hits in 2009, but had fewer job losses. Overall, the study says, job figures for the state were down 7 percent in 2009, versus just 3 percent in the green economy.

The Inland Empire was one of only three areas in the state where the green economy did worse than other sectors. While overall, the green economy in San Bernardino and Riverside counties has grown 43 percent since 1995, in 2009, green jobs went down 7 percent versus 5 percent for the rest of the economy in the region.

Next 10 did not have breakout figures for Riverside County, but Tracy Gosse, who authored the study, said the region was one of the hardest hit in the recession. In 2009, the area saw drops in business at the ports of Los Angeles and Long Beach, on top of the region’s moribund housing market.  Presumably, 2010-2011 figures, when available, will show some growth.

Still, what the study does show, without overselling or manipulating data, is that the green economy is growing as energy efficiency, renewable energy and recycling all go mainstream and are integrated into the supply chain and, that in many cases, its growth is bottom-line driven.

When Walmart places third on EPA’s list of the top 50 U.S. businesses buying renewable energy — with 75 percent of its California stores having some kind of renewable generation — then green jobs expand and other jobs become greener.

As Andrew Winston, a green business blogger at the Harvard Business Review website, noted in a recent post

“If the lords of low cost recognize the strategic value of green investments, so can the rest of us. ”

 

NextEra’s next solar plant will be PV

As it begins construction on its 250-megawatt Genesis solar thermal project east of the Coachella Valley, NextEra Energy has its second desert solar plant in the works.

The company has filed an application with the Bureau of Land Management for a 750-megawatt photovoltaic plant, called the McCoy Solar Energy Project, to be located 13 miles northwest of Blythe. The BLM filed a notice of the application in the Federal Register earlier this week, which means the official scoping period has begun, during which the agency collects public input on what issues it needs to look at for its official environmental impact report.  The deadline to submit comments to the agency for this round will be Sept. 28.

The available information on McCoy thus far is sketchy.  The project site includes 7,700 acres of public land and 470 acres of private land, which means the BLM will have to partner with Riverside County for the environmental impact report.  To connect to the grid, the project will need a 16-mile tie-line to connect with Southern California Edison’s Colorado River substation, and the right of way for that line will include both public and private land.

According to the company’s initial application, the McCoy project would generate enough electricity to power 225,000 homes. On the jobs front, NextEra estimates it about 600 jobs during peak construction and 13-20  for ongoing operation.

The fact that NextEra has chosen photovoltaic panels over solar thermal for this second project reflects the ongoing shift to PV for utility-scale solar plants — a trend driven by the plunging costs of panels and, hopefully, an easier permitting process.

NextEra had a difficult time permitting Genesis as solar thermal, primarily over water issues. Solar thermal requires a lot of water, and NextEra originally planned Genesis using the most water-intensive “wet cooling” technology, which led to long wrangles over whether the project would tap into the Colorado River aquifer. The BLM pushed back and the company had to change to more water-efficient “dry cooling” technology to get the project approved.

The tradeoff here is that while PV uses almost no water, it isn’t as reliable a power source as solar thermal, which uses heat from solar troughs to run steam turbines. The turbines create a smoother power flow compared to the spikier electricity coming from PV panels that convert sunlight directly to electricity.

While it is impossible to know at this point,  in the past, the BLM has held at least two public scoping meetings per project on the solar plants it has already approved in the Riverside East solar zone — one in the Coachella Valley, usually at UCR Palm Desert, and one in Blythe.  Given the Sept. 28 deadline, whatever’s going to happen will likely be happening soon.

I will be following up on this next week along with First Solar’s Desert Sunlight project to see how many valley residents have gotten call backs from the job fairs the company held almost three weeks ago.

Here’s hoping the Labor Day weekend will be followed by green jobs for some of the 1,200 valley job seekers who turned out at the Spotlight 29 Casino to apply for work on Desert Sunlight last month.

Energy rising for Riverside East solar

Momentum is building on the industrial scale solar projects in the in the Riverside East solar zone — 202,000 acres of public land between Joshua Tree National Park and Blythe.

In my email box today — the announcement from the Department of Energy that it has approved a $681.6 million loan guarantee for NextEra Energy’s Genesis project, a 250-megawatt solar thermal plant.

This Friday sees the official ground-breaking of Solar Millennium’s Blythe solar project — at 1,000 megawatts one of the largest solar thermal projects in the world.

U.S. Secretary of the Interior Ken Salazar is going to be the headliner here, along with Bob Abbey, director of the Bureau of  Land Management.

The downside here is Solar Millennium continues to tightly control media access to the site.  Reporters and other offiicals invited to the event will be shuttled out to the site and then shuttled back to Palo Verde Community College for a reception.

I have been lobbying the company hard for several months to get a real site visit to meet and spend time with Solar Millennium’s biological and cultural monitoring teams to see what’s actually involved in clearing the land before construction.  So far I have been given excuses ranging from my lack of the special training required for site access (I said I would gladly take any training required) to personal safety — they were surveying the site for unexploded bombs left over from the land’s World War II use as Gen. George Patton’s desert training center. I was told later no bombs were found.

I have not given up getting my boots on the ground out there,  but not Friday.