California Adopts Photovoltaic Energy on a Large Scale

The principal distributor of California’s electricity, Pacific Gas and Electric (PG + E) just signed an agreement with two local companies of photovoltaic cells to develop a plan with the total capacity of 800 megawatts, over 35 times greater than the biggest current world installation. It would instantly triple the photovoltaic capacity in the United States.

PG & E will get 550 megawatts with OptiSolar, a developer of flexible photovoltaic film that will spread onto panels covering over 2500 hectares: and 250 megawatts with solar power with an installation that will cover over 900 hectares. Capable of fueling the equivalent of 240,000 houses, the two solar firms will be built in the proximity between San Francisco and Los Angeles. They must be operational by 2011.

Thus, PG & E will fulfill its state-imposed mandate to integrate over 20% renewable energy into its portfolio by 2010. With barely 11.4 % of electricity coming from renewable resources in 2007, less than 1% of it from solar energy, the distributor is pressed to find solutions to increase its quotas. It multiplied its contracts in the last few months with a concentration on solar-centered projects. The agreement with OptiSolar and Sun Power should allow it to reach 24% of renewable energy in 2013.

Unchanged Prices

“This project will drive photovoltaic energy on a larger scale to the level of energy sources on which will have to rely, not only in California but in the Western United States,” assesses John White, director of the independent California agency Center for Energy Efficiency and Renewable Technologies.

Up to now, the biggest photovoltaic center in the world has a capacity of 23 megawatts. In use since last February, it comes to 25 hectares in Southeastern Spain.

No details have been revealed on the project’s cost, its business model or the rate negotiated with PG & E. The cost of photovoltaic solar energy is actually 0.40 per kilowatt/hour, against 0.18 for thermal solar energy and 0.12 dollar for wind. PG & E has nevertheless assured that its price would stay unchanged for the customer. From their side, SunPower and OptiSolar have affirmed that the economics on a project of this stature would permit them to offer reduced rates to those taking part in the standard projects.

There are still several obstacles to cross before California seizes the title of world champion of photovoltaic: find some partners for the financial costs, obtain the permits to work with local authorities and to develop the lines of electric transmission.

Finally, the PG & E contract is attached to a conditional clause: the renewal by Congress from here until the end of the year for tax cuts tied to renewable energy.