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Renewable Energy. Southwestern Utility Consortium CSP Initiative. Arizona Corporation Commission CSP Open Meeting Friday, October 6, 2006. Renewable Energy. Background. CSP facilities experience greatest cost efficiencies around 250 MW
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Renewable Energy Southwestern Utility ConsortiumCSP Initiative Arizona Corporation Commission CSP Open Meeting Friday, October 6, 2006
Renewable Energy Background • CSP facilities experience greatest cost efficiencies around 250 MW • Today, few utilities have the appetite for a solar facility that large • Joint development allows greater scale, and therefore lower prices than can be achieved individually • Joint ownership is familiar to most utilities (i.e. Four Corners, Springerville, PVNGS)
Renewable Energy Why CSP? • Solar is Arizona’s greatest renewable resource • CSP is the most cost-effective solar resource • Peaking capacity when paired with storage or natural gas • Potential for cost competitiveness in near future
Renewable Energy Participating Utilities • Arizona - APS, SRP, TEP • Nevada - Nevada Power • New Mexico - PNM • Colorado - Xcel (PSC) • California - SMUD, LADWP, NCPA • Texas - El Paso Electric
Renewable Energy Timeline of Events
Renewable Energy RFI - Project Parameters • Concentrating Solar Power • Trough • Dish • Concentrating PV • 250 MW • Transmission to Participants • Arizona/Desert Southwest • Commercial operation in 2010
Renewable Energy RFI Responses • 7 entities • 240 to 320 MWs • Technologies • 1 Dish Engine • 1 CPV • 5 Trough • Various levels of information provided
Renewable Energy APS Preliminary Conclusions • Sufficient developer interest • Most cost effective solar technology • Higher “green premium” than non-solar alternatives (i.e. wind, biomass, geothermal) • Natural gas and/or thermal storage is necessary to maximize value
Renewable Energy Location/Priority • Site Priorities • Transmission to NV & CA • Natural gas supply • Flat land - 1,500 to 2,000+ acres • Solar radiation • Water • Potential Sites: • Kingman • Red Lake • Bullhead City • Yuma • Snowflake
Renewable Energy Critical Issues • Joint Development Group • Commitment • Legal Structure • PPA Structure • Site Location • Land • Transmission • Natural gas • Water • Regulatory Support