Print 85 comment(s) - last by SPOOFE.. on Dec 3 at 1:57 AM

A map of the planned 250 MW solar power plant, showing preserved land (green) and installation area (blue).  (Source: NRG Solar/SunPower)

The plant will be located roughly halfway between San Francisco and Los Angeles, just south of California's Bay Area.  (Source: Wikipedia)
Plant would take around 15-20 years to break even if electricity was sold at coal power rates

If there's one thing critics and proponents of solar power alike can agree upon, it's that solar power, like any commodity, will go down in price when it is produced at a greater volume.  Recently announced plants, like a 280 mega-watt (MW) installation in the Arizona desert go a long way towards achieving that sort of volume increase.

As does a new 250 MW installation in San Luis Obispo County, California which was formally announced this week.  Construction on the new plant will commence next year and is expected to create 350 construction jobs.

San Luis Obispo is a coastal county that is relatively rural and lightly populated by Californian standards.  It's roughly halfway between Los Angeles and San Francisco, two of the state's biggest cities.

The new plant will be a joint venture between NRG Solar, Inc. and SunPower Corp. -- two veteran solar power firms (SunPower, alone, will have installed over 1.5 GW of solar power by the year's end).  NRG Solar is expected to pitch in $450M USD over the four year launch period.  NRG will own the plant, it is basically contracting SunPower to design, build, and operate the plant.

The plant will begin producing electricity in late 2011.  By 2012 to 2013 it is expected to reach full capacity, as construction completes.  The plant is expected to provide enough power for 100,000 households.

The new plant is named the "California Valley Solar Ranch". 

NRG Solar is seeking government loans from the U.S. Department of Energy to initially finance the construction.  While U.S. President Barack Obama recently handed out $1.85B USD in grants to solar power projects, the new installation likely will not receive any of this money.

Securing a government loan is critical to the NRG and SunPower's plan.  States Howard Wenger, president of the utility and power plants business group at SunPower, "The DOE is playing a critical leadership role in supporting renewable energy that provides economic and environmental benefits, as well as a secure, stable energy supply in the U.S."

The project has been in the works for the last two years.  It is expected to be operational for at least 25 years.

Challenges to the plant's success remain.  Currently environmental activists in California are vigorously resisting large solar and wind installations, which they fear will damage fragile ecosystems.  They have filed lawsuits to try to block similar projects.

The California Valley Solar Ranch project may placate these critics, thanks to the 2,399 acres it sets aside as a wildlife habitat.  The plant and associated facilities are expected to occupy 1,966 acres of land.

Another challenge is the underlying economics.  While the California Public Utilities Commission has agreed to buy 25 years worth of power from the installation, likely at an inflated price, it remains to be seen exactly how much money the plant will make.  Coal power costs around $0.06-$0.08 USD per kilowatt-hour, so if the solar plant's power was sold at an equivalent rate, it would take around 15 to 20 years for the plant to break even.  Thanks to large markups to alternative energy power, though, it should break even much sooner, boosting NRG Solar and SunPower.  Nonetheless, some consumers may be unhappy with paying this kind of markup so that their power can be "greener".

Still, it's common knowledge that you have to invest up front to gain access to new technology.  And with large scale installations like this new one in California and the currently developing one in Arizona, the cost per kilowatt hour of solar power in the U.S. should fall over the next few years.

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RE: Massive is all relative.
By mcnabney on 12/1/2010 12:32:31 PM , Rating: 1
You do realize that you are factoring the uptime/efficiency TWICE in your calculations.

This plant produces 250MW @25% efficiency (6 hours on average sunlight everyday over a year) = 1.5GWh per day.
The dual-core reactor produces 2000MW @90% efficiency (scheduled maintenance and refuelling takes plant offline for extended periods) = 43.2GWh per day.

Now the nuclear plant makes 28.8 times as much power, but also cost 18 times as much to build. Once the very high costs of operating the nuclear plant and providing tight security are factored, as are the tax incentives for solar, they are really not that far off in dollar efficiency.

I would also point out that the solar panels are 100% recycled at EOL and there is no reason to believe that a solar farm would ever need to be decomissioned. Nuclear reactors are decomissioned - at great cost.

Now there are two things that would alter the math. Scale in panel manufacture and common reactor design which would both significantly drop the fabriaction/design/construction costs of the associated technology. I honestly think that we should be doing BOTH and creating a massive electricity generation surplus so we can ditch imported OIL - a cause we should all get behind. Energy independence FTW!

RE: Massive is all relative.
By rvd2008 on 12/1/10, Rating: -1
RE: Massive is all relative.
By SPOOFE on 12/1/2010 7:10:05 PM , Rating: 4
there is a need in peak power plants during the day. And solar will provide that nicely.

No, it won't. It will provide that power sporadically, unreliably. "Rolling blackouts" is the phrase that should be running through your head.

RE: Massive is all relative.
By Nfarce on 12/1/2010 9:19:59 PM , Rating: 3
Nukers? Nukers? Are you talking about nuclear energy or nuclear bombs there, sport? You got a windmill and solar power running that PC you just posted on? Didn't think so.

You know what amazes me? Probably the vast majority of you anti-nuclear energy bed wetters would like the US to be more like Europe, especially in socialist agendas (hell even some of the more extremist wingnut wackos even want Europeans to be allowed to VOTE in American elections).

But when it comes to joining European nations like France in nuclear energy output per capita, suddenly it's oh hell no! The very least you pie-in-the-sky solar/wind dreamers can do is be consistent.

RE: Massive is all relative.
By SandmanWN on 12/1/2010 11:37:00 PM , Rating: 4
28.8 times as much power, but also cost 18 times

29x the power at only 18x the cost, hmm....

If you were actually pitching solar panels to me as a business proposition, I would have totally thanked you for convincing me to go nuclear.

RE: Massive is all relative.
By Strunf on 12/2/10, Rating: 0
RE: Massive is all relative.
By SPOOFE on 12/3/2010 1:04:14 AM , Rating: 2
Operating cost offset by reliable predictability. Problem solved.

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