California utility PG&E buys big into solar power

California utility Pacific Gas & Electric on Tuesday announced a five-year program to produce 500 megawatts worth of solar energy from distributed solar panels.

Rather than build one giant solar power plant, PG&E plans to generate solar power from a collection of midsize projects, from 1 megawatt to 20 megawatts. This investment will cover half of the total target of power generation.

(Credit: Martin LaMonica/CNET Networks)

One megawatt is enough to power one large retail store or roughly 300 homes. A large solar installation at a single business, such as Google's rooftop array and solar carport, can be over 1 megawatt in generating capacity.

Solar photovoltaic panels will be mounted on rooftops or mounted on poles in PG&E's service area in Northern and Central California. The utility will seek to install the panels on land it already owns or near substations to avoid having to build new transmission lines, it said.

PG&E will rely on outside providers for the other 250 megawatts. If operating by 2015, the electricity will be enough to power 150,000 homes annually and account for 1.3 percent of PG&E's electrical demand.

The move is one of the largest solar-power projects to date and significant because it represents the first time in more than 10 years that PG&E has invested directly in renewable energy. Until now, it typically purchased electricity from third-party clean-energy project developers.

Many project developers and financiers are unable to take advantage of the 30 percent renewable-energy tax credit because they don't anticipate having a tax bill. Because PG&E has a "tax appetite" and can take advantage of the tax credit, the utility is investing directly in solar energy, CEO Peter Darbee said last month when he first mentioned the solar project.

California has a renewable portfolio standard that mandates that utilities get 33 percent of their electricity from renewable sources by 2020. In the past month, two other large solar projects--one with NRG Energy and one with Southern California Edison--were announced.

Because the recently passed stimulus package now allows utilities to take advantage of the 30 percent tax credit, more utilities will build and own solar facilities, said Julia Hamm, the executive director of the Solar Electric Power Association, in a statement.

Environmental advocacy group Natural Resources Defense Council lauded the PG&E plan because building distributed solar power is a relatively quick way to deploy the technology.

"PG&E's intent for development of these projects--on already developed land close to transmission and distribution--is exactly where it needs to be to reduce environmental impacts and speed development," said Sheryl Carter, Energy Program co-director at the NRDC, in a statement.

PG&E said that it submitted the plan on Tuesday to the California Public Utilities Commission and that it could be approved later this year.

[imhodudes]

Just to be sure I have this right, this will all be expansion power, as opposed to a replacement for current power sources. That is, it will bring about zero reduction in emissions, only a reduction in what emissions hypothetically *would have been* if our heads were so far up our ash as to create the equivalent in additional new coal, oil and/or natural gas plants.

[imacpwr]

Let me get this right, by 2015 150,000 homes will go solar to account for 1.3 percent of PG&E's electrical demand. Ok, a drop in the bucket so far but your article states and I quote; "California has a renewable portfolio standard that mandates that utilities get 33 percent of their electricity from renewable sources by 2020." WHAT...?!?! 33% by 2020...???!!! How in the world is California going to jump from a measly 1.3% to 33% from 2015 to 2020....?!?!?! Me thinks someone's been standing out in the sun too long...!!!

[cyberspittle]

Every freaking single-level parking lot should be covered with a roof of solar panels. Wouldn't it be nice to park in the shade? Cities would benefit from increased revenue (rented space), while the electric company would benefit with a new power plants. Other sunbelt states should pay attention. Have you parked a car in the hot Arizona, Texas, or Georgia sun?

[imacpwr]

SMUD (Sacramento Municipal Utility District) did it years ago at the Cal Expo Fairgrounds.

See link for high resolution picture:
http://www.smud.org/en/news/PublishingImages/pv_aerial2004.jpg