Nevada—home of nuclear testing and 99-cent ham and eggs—could become a hot spot for conservatives and conservationists.
CARSON CITY, Nev. --- Nevada Governor Brian Sandoval and other state officials recently sat down with a few of us environmental journalists to discuss the state's green initiatives.
“I’ve taken it upon myself to make this a priority,” he said. “Nevada historically has been a mining and gaming and tourism state, and everyone understands we need to put another leg on the stool.”
He also talked about recent meetings with Democratic California Governor Jerry Brown and Secretary of the Interior Ken Salazar.
It’s not the kind of thing you expect to hear from a sitting Republican.
But Sandoval, as well as Republican Lieutenant Governor Brian Krolicki, might represent a trend I suspect (or hope) exists beneath the radar -- namely, that the antagonism toward renewable energy on the national level maybe isn't as deep as it might look. Yes, Fred Upton might get attention by calling for a repeal the Energy Independence and Security Act of 2007, a bill he sponsored, but it doesn't mean that his constituents in Michigan see the new battery factories in the state as the harbinger of one-world socialism.
Environmental politics have only recently become so polarized. Presidential candidate Tim Pawlenty objects to carbon legislation now, but he favored such policies back in 2008. Arnold Schwarzenegger helped steer California’s green policies. And don’t forget, cap and trade was an idea devised under George Bush I to curb acid rain.
So what might make the pendulum swing back?
1. Green = Jobs. Both Sandoval and Krolicki emphasized how green equals employment. Plus, Nevada doesn’t have a fossil fuel industry, which means a noticeable absence of coal and natural gas lobbyists.
Instead, the state is populated with contractors, who’ve been saddled with declining incomes and intermittent employment since 2008. While renewable power plants do employ people directly, most of the jobs come through construction: erecting solar fields, putting up wind farms, etc.
“There are [Native American] tribes in southern Nevada that see this as an opportunity for jobs and to diversify themselves,” said Sandoval.
More than 60 bills addressed energy in the last legislative session, noted Stacey Crowley, the state’s energy director, second only to education.
2. Resources. Most of the seventh largest state in the U.S. looks like a set from Mad Max: miles of hot, empty desert broken up by the occasional town. It’s attractive in a Jean-Paul Sartre sort of way. It’s also ideal for solar farms. SolarReserve just obtained a $737 million loan guarantee for a 110-megawatt solar thermal plant with molten salt storage near Tonopah.
3. Exports. California and its 33 percent renewable portfolio standard sits right next door. Nevada is looking at establishing three east-west transmission corridors to send power to the state. Nevada has its own RPS -- 25 percent by 2025 -- but it has more raw resources than it needs.
“They’ve got a very aggressive standard. We’ve got the supply,” he said. “It is an opportunity for a marriage between Nevada and California.”
4. Flexible attitudes. Nevada has always exhibited a somewhat skeptical view toward government. I know. I grew up there. Grocery stores used to sell handguns. Some bars haven’t been closed since John F. Kennedy was assassinated in 1963. We gave the world no-limit pai gow, drive-in marriage chapels and Area 51.
The important part, however, is that this attitude isn't fostered out of some die-hard strain of Libertarianism. Instead, it's pragmatic. Gambling became legal to help the state wiggle out from beneath the power of mining conglomerates.
Geez, people. It's not Arizona.
5. Low-Hanging Fruit. Nothing stimulates momentum for green industries more than early victories or losses. Luckily, some of the local experiments have gone quite well.
Reno, for instance, replaced the lights in its downtown arch (“The Biggest Little City in the World”) with 2,076 LEDs, according to Jason Geddes, environmental services administrator for the city. It reduced power consumption for the sign by 70 percent.
The city is now switching out street lights and pedestrian crossing signals with LEDs. Reno’s city hall reduced its own power consumption, from $4.54 a square foot to $2.54, by 45 percent with new hot water boilers and lights. OK, so ROI on the small wind turbines might take 35 years and the legislature just killed a feed-in tariff: just imagine what you can do with LEDs in slot machines.
Geothermal has been a hit, too. The 100-megawatt Galena geothermal plant outside of Reno provides 22 percent of Reno’s daytime power.
6. Size = Power. Last year, we asked Mississippi officials how they managed to convince four rising startups to open factories in its borders, particularly when the state didn’t even have a renewable portfolio standard.
Low-cost loans and fairly low labor rates turned out to be the answer. But the state also noted how it can provide personalized service because of its small size. A manufacturer wants to meet a high-ranking state official. One phone call and the meeting is set.
The same circumstances exist here. Sandoval touts the state's ability to offer “service after the sale,” i.e., ensuring that the state will smooth out potential bureaucratic nightmares.
“As governor, I’m making phone calls to CEOs,” he said. “I literally have call lists.”
Google is currently lobbying the state to let robotic cars on the road. What do you want to bet that that measure passes?
7. Housing. The state was number one in foreclosures in 2009 and 2010. Relocation will be cheap.
8. A Cluster of Expertise. Because of the state’s geology, it has emerged as one of the centers of geothermal power and research.
Interestingly, you’re also now beginning to see the formation of lateral industries. ElectraTherm, headquartered in Reno, makes low-temperature waste heat recovery devices. The company’s Green Machine absorbs heat to boil an organic refrigerant. The vapor is then exploited to turn a turbine.
Basically, it is an above-ground geothermal system, but instead of getting the heat from hot springs beneath the ground, ElectraTherm harvests heat from burning discarded wood chips or industrial equipment. A former drag racer founded the company.
“It [heat] is huge and it is completely untapped,” said CEO John Fox. “A Caterpillar engine is 33 percent efficient, so two-thirds of the energy is lost.”
The company has shipped units to Alaska and Australia. Senators Bingaman and Murkowski are trying to get waste heat added to the list of renewables that qualify for tax incentives, he added.
Will other states and regions try to develop industries based around exploiting heat? Absolutely. Is heat going to be as big as solar? Maybe not, but there’s no denying that an island of expertise has begun to coalesce in Nevada.
Interestingly, President Obama spent Earth Day in 2011 at ElectraTherm’s headquarters.
Maybe there is something to this bipartisanship thing after all.
The Solar Energy Industries Association (SEIA) hosted a press teleconference today to discuss an emerging trend in the utility-scale solar market toward diversifying solar technologies in utility-scale power plants. But the call strayed from the diversification topic and addressed some of the major issues confronting the U.S. market in 2011.
Jobs, Jobs, Jobs
Rhone Resch, President of SEIA, said that the solar industry employs 100,000 Americans and that that number could double in the next two years. Within a few years, the U.S. will be the world's largest solar market, according to SEIA.
1603 Tax Grant Program and Solar
Resch said that the 1603 tax grant program has filled the void in the collapse of the tax equity market and that the grant program has doubled the efficiency of the Investment Tax Credit (ITC). He remarked that it is scheduled to expire despite the tax equity market not having fully recovered. (The 1603 program provides a 30 percent grant in lieu of the tax credit.)
Resch said, "We have found it to be absolutely critical in the last two years." Resch added that SEIA wants the1603 program extended through 2016 "so we have business certainty. We've found that the 1603 program is an extremely efficient policy for job creation." In the last two years, the solar industry has created 50,000 jobs, according to Resch, adding that the U.S. market will double from 1 gigawatt in 2010 to 2 gigawatts in 2011 and could possibly double again if the tax credit is extended.
This is the kind of policy that yields huge results, creates jobs and doesn't have an enormous impact on taxpayers, according to Resch.
Extension of 1603 is the number-one priority of SEIA and they are working with Republicans and Democrats on the issue. SEIA thinks it has a good chance of extending the program -- and instead of extending it for one year, the group would prefer to see "it ingrained in the tax code through 2016." The 2012 Obama budget does have an extension of the TGP for one more year, according to Resch.
Resch added that 1603 is "simply the most important policy for continuing renewable energy growth in the U.S." The 1603 grant provision was actually passed during the Bush Administration.
It's not just large-scale solar that will feel the pain if 1603 expires. Tax equity and grants are what keeps solar residential financing companies like SolarCity, SunRun and Sungevity in business.
According to law firm K&L Gates, "The 1603 Treasury Grant Program is dead after 2011. There won't be an extension." That information was reported by Ed Gunther while attending a GABA event.
Pushback From the Environmental Community on the Solar "Land-Grab"
Resch notes that the oil and gas industry has received 74,000 permits for drilling on public lands over the last century, while the solar industry has received nine permits to build on public lands. "There is no land grab," said Resch, adding, "The EIR [environmental impact report] to study these areas has been comprehensive."
Resch also notes that 75 percent of the U.S. public support locating solar on public land instead of using it for grazing or other uses.
Technological Diversification, etc.
Arizona wants to be a leader in solar. (In 2010, Arizona was the fourth largest state market for solar with 55 megawatts of solar installed.) But that is certainly set to change.
Pat Dinkel, VP of Resource Planning, Arizona Public Service spoke of the Solana solar trough plant -- an Abengoa project with a U.S. DOE loan guarantee, the $500 million, 100 megawatt Arizona Sun project and the plan for Gila Bend to be the solar capital of the world.
In addition to those large projects, APS is working on a number of projects in the 15-megawatt to 20-megawatt range using c-Si panels on trackers or CdTe on fixed mounts.
Tom Georgis, Senior VP of SolarReserve, spoke of the Crescent Dune project (which is backed with a loan guarantee) and the Rice project (which is currently going through the loan guarantee process). Georgis restated the need for clarity and certainty around policy in order to attract project and corporate capital.
Jim Stein, VP of Government Affairs, Schott North America, does qualify as a diverse supplier, as the company manufactures PV panels as well as CSP tubes. The firm has nine manufacturing sites in the U.S. and a flagship Albuquerque solar facility employing over 300 people and looking to expand to a workforce of 1,500 in the near future.
The Asian Development Bank (ADB) is lending up to B4.2 billion to The Bangchak Petroleum Company Public Company Limited (BCP) to build two solar power plants in central Thailand. The loan agreement was signed today in the Thai capital, Bangkok.
The 8-megawatt and 30-megawatt plants - due to be completed in Ayutthaya next year - will help the Thai government achieve its target of getting 20.4% of its primary commercial energy - or 5,608 megawatts of installed power - from renewable sources by 2022. Currently, renewable sources, including biomass, solar, and hydropower, only contribute 1,754 megawatts of energy.
"This marks one of Thailand’s biggest solar power plant projects and clearly shows the viability of large-scale solar power generation in the country and, indeed, elsewhere," said Joe Yamagata, Deputy Director General in ADB’s Private Sector Operations Department. "If Thailand can meet some of its growing demand for power from renewables like solar energy, the country will generate less greenhouse gas than it would have otherwise."
BCP - listed on the Thai stock exchange - is a prominent integrated oil refining and marketing company in Thailand. Its largest shareholder is national oil company PTT PCL. BCP has kicked off a zero-carbon strategy under which it will neutralize its carbon footprint by developing large-scale solar power projects and reduce carbon emissions across its operation.
Under the 15-year loan agreement, Japan’s Mizuho Corporate Bank Ltd. will assume a large portion of the medium-term risk on the Baht-denominated loan. In addition to the loan, ADB is also providing $400,000 in technical assistance to help BCP develop, implement, and monitor its carbon neutral goals and provide training to other energy companies in zero-carbon emission strategies.
Thailand is one of the largest energy consumers in Southeast Asia and the Electricity Generating Authority of Thailand (EGAT) projects demand to grow an average of 4.22% per year between 2008 and 2020. Currently, around 70% of Thailand’s installed power generation is sourced from imported natural gas, which leaves the country at the risk of volatile prices and uncertain supply. However, the tropical nation has a very high potential to generate solar energy.
EGAT and the Provincial Electricity Authority have agreed to buy the power generated by the two plants. The plants will use multicrystalline technology produced by Suntech Power, a solar panel manufacturer listed on the New York Stock Exchange.
The Bangchak plants are part of ADB’s Asia Solar Energy Initiative, which seeks to support projects that will help Asia make the most of its potential to generate solar power. The initiative aims to provide $2.25 billion in financial support to realize 3,000 megawatts of solar power in ADB’s developing member countries by mid 2013. The loan to Bangchak is part of ADB's growing private sector activities, which are expected to account for half of ADB operations by 2020.
2010 just might go down as the year solar energy gained mainstream acceptance.
Local stores that sell solar products are seeing major boosts in sales compared with last year, some as much as 40 percent.
The sun-powered momentum is fueled by less expensive products that are made more affordable through federal tax credits and rebates at a time when utility prices are rising.
Another contributing factor to the rising interest in renewable energy is the recent BP oil spill in the Gulf of Mexico.
"It's made the masses realize the difficulty of getting fossil fuels," says Rita Norton, a retired schoolteacher who invested in a solar panel electrical system several years ago for her Kansas City Cape Cod-style home. "More people are talking to me about solar, which is simply free energy from the sun."
The biggest hurdle with solar power is the initial cost of equipment and installation. The 12 panels for Norton's 1,400-square-foot home, which she bought before today's major incentives, were a hefty sum. Still, she finds her investment paying off.
The panels on Norton's roof convert sunlight into direct current electricity, which travels through a wire-filled conduit to batteries in the basement. Her system is connected to the city's electric grid but also can run independently with the exception of the clothes dryer (she prefers line drying anyway) and air conditioning.
"I'm a wuss when it comes to heat, so I use air conditioning," Norton said. "Last summer, my top bill was $85. I suspect I will always have low bills (between $30 and $40) for taxes and service charges."
Although solar panel prices are likely to continue to decrease, not everyone can afford them. But other solar options are available.
The Argentine Neighborhood Development Association in Kansas City, Kan., recently built several affordable energy-efficient homes. Although these aren't fully solar-powered homes, they have several solar features. And they are popular.
"The houses were sold before they were finished," said Ann Brandau-Murguia, executive director of ANDA and a commissioner of Wyandotte County's Unified Government. "We liked how these features make utilities affordable for residents in the neighborhood. It's important because it's populated by people with middle to lower incomes."
Isabel Reyes, Rocky Orozco and their three daughters moved into one of the houses, a blue two-story with a wraparound porch. You have to go to the backyard to tell the house has solar features. In their case, it's a framed black panel, a solar air heater, attached to the back of the house. The panel can be mounted on the roof.
"It's attractive, almost elegant even," said Reyes, who works in nutritional services for the Kansas City, Kan., school district. "It's like a black mirror."
The heater worked well, too, Reyes said. In winter, hot air comes out two circular vents, similar to dryer vents. A thermostat can be set to blow the warm air into the house. In the summer, the vents are closed, and Reyes and Orozco conceal them with a tall houseplant.
Upstairs, they have solar daylighting tubes, which provide natural light sources from ceilings like small round skylights. "It's nice because you don't have to turn any switches on," Reyes said. "It's always as bright as it needs to be."
The house also has a solar attic vent-fan, which cools the attic and lowers the temperature in the upstairs living quarters.
Residents learned about the features in their houses at an informational meeting with the systems' installers. A common question was about the efficiency of solar on cloudy days. They learned the power still charges."If you consider a home a car, this is a 2010 Cadillac," said Orozco, a postal service mail handler. "It's got different styling and updated functions, so occasionally you have to get out the owners manual."
FAQ
How do I determine what size photovoltaic system my house would need?
Review your last 12 months of electric bills. A home's square footage is not necessarily related to energy usage.
What types of permits are involved to install a solar system to generate electricity?
All cities and most counties require an electrical permit be obtained before a system is installed. Also, the local utility will require an interconnection and net metering agreement. Your system will be inspected for local codes, by the utility's licensed engineer or electrician, and sometimes by the fire marshal.
What is my payback period for a solar PV system?
It's dependent upon net metering, costs of electrical energy, incentives and real estate market for sustainable features. For a 3-kilowatt system, it's typically a 12- to 15-year payback period but could be close to 10 years in Missouri because of incentives. Solar hot water and air heating have much shorter payback periods.
How can I heat my home or water with solar power?
These panels are different from those that produce electricity. Solar air and water panels capture heat from the sun on their surface and transfer the heat to a holding tank or vent.
How big of a solar hot water system do I need?
The size of a system is based on the size of the household. The average person uses 20 gallons of hot water per day. So for a home of four, an 80-gallon system is needed.
Pros And Cons Of Solar Panels
+ Free source of electricity after initial investment.
+ No pollution produced. The only pollution is from their manufacturing, transportation and installation.
+ Can harness electricity in remote locations that aren't linked to a national grid.
+ Reduces dependence on the world's fossil fuel supplies.
+ Tax credits and rebates are available.
- Initial cost is high.
- Can be a bureaucratic hassle. Although most cities and homeowners associations have no problem with them, some do. Some stipulate using solar shingles for roofs, which are more expensive and less effective.
- Weather and pollution levels can affect efficiency. This comes to play in densely populated urban areas, which tend to have high pollution levels.
Incentives for solar energy systems FEDERAL
Tax credit: 30 percent of cost with no upper limit. Expires Dec. 31, 2016.
Includes: Photovoltaic panels, water heaters, attic fans and air warmers.
Approximate Solar Prices Installation Costs (Not Including Incentive Reductions).
-- Air heater, $2,900
-- Attic vent-fans, $550
-- Daylighting tubes, $550
-- Lawn mowers, $750
-- Photovoltaic systems, $8,000 to $50,000
-- Water heaters, $7,000 to $9,000
Article by Stacy Downs Courtesy of Kansas City Star
It's disconcerting to see the media continue to frame this investment as a 'giveaway'--it only serves to build opposition to the droves that feel we don't owe developing countries anything. And that's exactly how the Times frames it:
"The money would be used to help developing nations reduce emissions by switching to renewable energy sources like wind and solar and by compensating landowners for not cutting down or burning forests, a major source of carbon dioxide emissions.
It's like it's one giant philanthropic fund from the rich world to the poor--but that shouldn't be the case at all. “
Instead, as Susan Kraemer at Clean Technica points out, the media should be analyzing the potential benefits that such an investment could have on the world economy. She writes:
..this is an investment in solar and wind and flood wall businesses. The real beneficiaries are the countries whose renewable energy businesses will grow from this investment. A more appropriate headline might be: Climate Deal Likely to Bring Big Boom to Renewable Sector.
This so-called giveaway is not from the developed to the developing world, but from the developed world's governments to their own developing companies in the post carbon age. Their own renewable energy companies will benefit - and add jobs.
How much might they benefit? Two think tanks, San Francisco-based ClimateWorks and The EU's Project Catalyst; whose work has helped shape the negotiations in Copenhagen estimate that this investment globally will amount to about $100 billion by 2020. Just from this assistance fund.
These are the right things to be considering in determining how to allocate aid--not dragging our feet because we have to give poor nations money. Let's consider how the burgeoning renewables industry could benefit--and how American companies could profit by investing in such projects abroad. A thriving renewable sector could bolster developing nations' economies and present real opportunities--so let's stop complaining that it will be so expensive to bail out poor polluting nations, and start asking the right questions.