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Public Utilities Commission of Texas Project No. 35792 Workshop Rulemaking Relating to the Goal for Renewable Energy. Austin TX March 31, 2010. SunPower Corporation. Over 400 MW/yr manufacturing capacity. Over 100 patents and 25 years of R&D. Over 600 dealers and growing rapidly.
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Public Utilities Commission of Texas Project No. 35792 Workshop Rulemaking Relating to the Goal for Renewable Energy Austin TX March 31, 2010
SunPower Corporation • Over 400 MW/yr manufacturing capacity • Over 100 patents and 25 years of R&D • Over 600 dealers and growing rapidly • 5,000 Employees; 100% solar PV • Over 550 systems on 4 continents • 2009 Revenue of $1.5 billion Residential Power Plants Commercial
Global Solar Photovoltaic (PV) Industry Growth • Global PV industry has seen a 10-year compound annual growth rate (CAGR) of 46%, and a 5-year CAGR of 56% through 2008. • Global average PV module prices have dropped 23% from 1998 to 2008 • Global installed PV capacity increased by 6.0 GW in 2008, a 152% increase over 2.4 GW installed in 2007. • US installed 0.34 GW of PV capacity in 2008, a 63% increase over 0.21 GW in 2007. Most PV growth currently occurring in Europe and Asia. • Forecast: Annual global PV production and demand to reach 20 GW by 2012, a 4X increase from 2008. Source: DOE 2008 Solar Technologies Market Report; released January 2010
Solar PV Power Plants Are Cost Competitive Levelized Cost of Energy (LCOE) by Resource $/MWh: 2009 - 2012 Renewables Solar PV $87 - 196 Solar Thermal $129 - 206 $57 - 113 Wind Conventional $225 - 342 Gas Peaking Gas Combined Cycle $74 - 102 0 50 75 100 150 200 250 300 350 400Levelized Cost ($/MWh) Prices include federal incentives Source: Lazard Capital Markets 3/18/2009
Texas PV Market Potential • Texas has vast potential for solar PV across entire state • Texas viewed as a leader in wind generation and in transmission • A thriving PV market will incentivize large scale solar projects in CREZs • PV is being deployed now at central station & for distributed congestion relief • Proven technology, operating for over 25 years • Requires no water, creates no emissions • Peaking resource aligned with peak demand • Generation profile is complementary to wind • The time is now for Texas to be a leader in the solar industry
Specific Comments on Strawman • 500 MW aggregate limit is too low, the PV potential in Texas is in the GWs • Multi-hundred central station PV power plants are in the advanced are in permitting stage in CA • The annual and aggregate limits on solar in the strawman proposal provides virtually no market stimulus to attract investment and sustained job growth • Solar Alliance has proposed a single Tier for non-wind RPS to allow maximum competition which we think can work as long as two conditions met: • 1) Total non-wind tier is large enough to drive PV market and economic development • 2) Incentive level sufficient to drive investment and PV project development • Compliance details will depend on market size and structure. • PUCT should drive near-term PV market to attract manufacturing, investment and jobs to TX now
Conclusion • Solar companies stand ready to invest in Texas if proper regulatory structure is in place • Solar manufacturers are poised to make location decisions today and will go where there is a market • Do not artificially limit solar market in Texas • The economic development created by embracing solar is real • Research is underway at National Labs across the country on integrating high penetration of PV into the electric grid • Our goal is to make solar generation mainstream