Monday, August 30, 2010

Solar Champions Wanted


Utilities are looking more favorably at solar photovoltaic (PV) electricity as a resource, as reported here last week. But to drill down more deeply into the analysis, the research firm Gartner and the Solar Electric Power Association (SEPA) recently held a webinar to discuss the survey.


"We wanted to understand how solar fit into the overall population of renewable resources that the utilities had," said Al Velosa, an analyst at Gartner.

One thing that struck the researchers was the widespread degree of acceptability solar PV has achieved. In short, solar power isn't just a research project or government mandate anymore, farmed out to lower level office to the utility enterprise, but an integral part of resource planning that is worthy of attention in the executive suite.

"A surprising number of utilities are using PV, especially considering the amount of installations," Velosa said. "PV clearly is a presence among the resources that are part of the portfolio."

One tipoff is the changes in the planning process.  If solar PV construction or procurement is only part of a mandate, it could be the responsibility of a "compliance team." But as it gains a more prominent role, more utilities are putting responsibility on the standard energy team.

"The energy team is something that makes the process more predictable because one change you get is that there starts a rich dialogue to get an idea of how the market is going," Velosa added.

This offers an opportunity for new resources. "There's clearly a need for champions. In legislatures and public utility commissions there're clearly a vocal and strong leadership promoting solar," he said. "And when we looked at our survey population, the traditional energy teams were clearly involved, which is very important."

While interest is high, the ownership model is something that is clearly in flux.

"We are getting mixed messages," Velosa said. "In some cases the utilities are very interested in owning the assets and having stronger control. In other cases, there's too much of a technological requirement," that means a reliance on independent power producers to own and operate the assets.

Whatever the business model chosen, PV appears to be gaining a larger share of the utilities' attention.


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