Jul 02 2008

PG&E Highlights Solar Thermal Benefits At Senate Hearing

Posted by: Leonard Anderson

Pacific Gas and Electric Company is committed to developing more supplies of concentrated solar power, citing the technology's availability during high-demand hours, relative cost effectiveness, and capacity to meet power demands, the California utility told federal lawmakers today. 

Fong Wan, PG&E's Vice President of Energy Procurement, told the U.S. Senate Committee on Energy and Natural Resources that concentrated solar power (CSP) could, in theory, produce seven times the energy needed to serve California. Wan spoke at a committee field hearing on solar thermal power in Albuquerque, New Mexico. PG&E has four solar thermal supply contracts for more than 1,700 megawatts of power, enough capacity to meet almost 10 percent of the utility's peak summer needs.

A study prepared by the National Renewable Energy Laboratory suggests that costs for CSP technologies could decline significantly, from approximately 16 cents per kilowatt-hour on average today, to approximately 8 cents per kilowatt-hour in 2015, Wan said in prepared testimony. The reduction in seven years is premised on an assumption that at least 4,000 megawatts of CSP will be built by then - not just contracted for - to achieve learning curve benefits.

"Photovoltaic technologies are also making great progress for utility-scale applications and we hope to be in a position to announce contracts for utility-scale PV applications soon," Wan said. "But - given these advantages - it's reasonable to ask why the country is not seeing greater progress on renewables."

Wan identified ways for lawmakers to help advance thermal power technologies and the burgeoning renewable energy industry. Despite falling costs, CSP can't compete on price with electricity fueled by natural gas. "We are confident that will change as economies of scale are achieved. But in the interim, federal production and investment tax credits are absolutely essential for continued progress," he said. Wan urged the government to extend the credits and also remove the ITC exclusion for regulated utilities.

Siting and developing new transmission lines to carry power from remote locations to customers will also enable renewables to expand, Wan said. He noted that Senate Majority Leader Harry Reid told the committee last month that the West alone will need 7,500 miles of new transmission lines over the next decade to expand renewable energy production. Wan also said integrating intermittent renewable resources into an overall supply is needed and one key is developing storage technology. He applauded Congress for including an energy storage R&D program in legislation last year.

"In this time of high energy prices, a weak economy, and heightened focus on security, the federal government is uniquely positioned to provide clarity of vision and foster stable growth in this critical sector of the energy market," Wan said.

You can read Fong Wan's testimony at:

http://energy.senate.gov/public/index.cfm?Fuseaction=Hearings.Hearing&Hearing_ID=a7228ca1-a50a-c91d-59d8-a682d15052ad

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