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What's Solar Really Worth?

Submitted by meacott on Thu, 2011-12-01 17:03
Requests for proposals to supply solar power facilities frequently specify prices to be stated in only one way—dollars per watt DC, or dollars per kilowatt-hour, for example. But a one-dimensional approach to pricing leads to skewed valuation, because different technologies and system designs produce value in different ways.

As the competition for commercial and utility scale photovoltaic (PV) projects increases, a better method for comparing proposal prices is needed to accurately value each offer. Currently, a common practice is to evaluate projects on a dollar-per-watt ($/W) basis, either DC or AC. This assumption is only valid as long as all the proposals have their DC or AC system sizes the same.

Transmission Rate Incentives

Submitted by meacott on Tue, 2011-11-08 17:03
In an October order, the Federal Energy Regulatory Commission (FERC) trimmed the authorized rate incentive for the RITELine transmission project by one-third. The action prompted Commissioner Moeller to ask whether the commission is retreating from its incentive policy on needed transmission lines.

FERC’s move might appear calculated to send a message to the power industry.

The Federal Energy Regulatory Commission (FERC) in mid-October granted a trimmed-down set of rate incentives for the proposed $1.6 billion RITELine transmission line project.

Going Once ...

Submitted by meacott on Thu, 2011-10-27 18:03
Mergers and acquisitions can help companies balance their asset portfolios and improve their financial strength. But economic and regulatory forces are driving more buyers into the market, and the demand for attractive targets might soon outstrip the supply.
Mergers and acquisitions can help companies balance their asset portfolios and improve their financial strength. But economic and regulatory forces are driving more buyers into the market, and the demand for attractive targets might soon outstrip the supply.

Cheap Gas Forever?

Submitted by meacott on Wed, 2011-09-28 18:03
Even with recent large natural gas discoveries and strong inventories, the supply of natural gas isn’t elastic enough to handle significant demand increases. Rising gas prices will push coal back into the money despite coal plants’ high costs to comply with EPA regulations.

When NYMEX closed on Tuesday, Sept. 27, Henry Hub natural gas spot prices were $3.92 per MMBtu. 24 months earlier in June 2009, the same spot prices ranged between $3.50 and $4.20 per MMBtu. Other than seasonal spikes due to increased heating demand, there has been a prolonged period of cheap natural gas. Even though natural gas prices have been slowly rising over the past few years, the industry has been wondering whether natural gas prices will ever rebound to the historical levels seen between 2006 and 2008.

Energy Efficiency: 15 percent by 2020?

Submitted by meacott on Wed, 2011-09-28 18:03
A new survey of energy industry experts reveals a surprising consensus on the size of the energy efficiency resource. Overall, energy efficiency is expected to lower electricity consumption by 5 to 15 percent, and natural gas consumption by 5 to 10 percent. These results debunk the notion that conservation is a fad. On the contrary, they herald a new beginning for energy efficiency.

Efficiency pessimists contend that energy efficiency (inclusive of demand response) is unlikely to make much of a dent on energy consumption and peak demand in the year 2020 since all the low-hanging fruit has been harvested. Ergo, the solution to meeting the nation’s future energy needs in a carbon-constrained future is to build more power plants (preferably those that don’t burn coal), transmission lines and distribution systems.