Perspective: Recent Solarpraxis PV Power Plants Conference
By Fred Greguras (Palo Alto)
The SolarPraxis PV Power Plants - USA 2011 conference in Phoenix brought together solar project developers, bankers and other investors, utilities, regulators and other stakeholders to discuss the problems and solutions for getting more utility solar projects built, particularly in the Western states.
The conference sessions included presentations on the development and status of renewable energy generation in the Western states comprising the Western Electricity Coordinating Counsel and how these states could work together more effectively. There was a consensus of stakeholders that the current approach of both independent power producer and utility-owned solar projects are needed to meet RPS requirements in western states. Concern was expressed over California's amended renewables portfolio standard (RPS) law enacted this spring. The law has a strong in-state energy sourcing requirement to meet the new goals and limits the eligibility of out-of-state energy and RECs for RPS purposes.
With the fast approaching December 31st expiration of the Section 1603 cash grant in lieu of investment tax credit, there was speculation about whether the cash grant would be extended and, if not, how to quickly and effectively qualify projects for the year-end safe harbors. There were also discussions about how the expiration would impact the financing of solar projects in 2012 and thereafter.
The U.S. International Trade Commission and the Department of Commerce's anti-dumping and countervailing-duty investigation into Chinese solar cell and module trade practices was mentioned by a number of speakers, particularly with respect to its consequences for the continued availability and pricing of solar modules in the U.S. market in 2012. On December 2, as expected, the ITC made a preliminary determination, voting 6-0, that there is a "reasonable indication" that those practices are detrimental to the domestic solar industry.
The conference concluded with a detailed and well-attended workshop on the "Dos and Don'ts of Large Scale Solar Development" led by the Clean Power Group and moderated by my colleague Dirk Michels. The workshop featured a large panel of industry veterans in project development, financing and construction.
In other news, 2011 ends on a positive note, with First Solar's announced sale of its planned 550 MW solar farm to MidAmerican Energy Holdings Co. Construction on the Topaz Solar Farm in San Luis Obispo County is expected to be completed by early 2015. This is good news for First Solar, and good news for the entire industry. Have a wonderful New Year.
