PCCA Journal|1
st
Quarter 2013
24
T
he adoption of utility-
scale photovoltaic (PV)
and concentrating solar
power (CSP) plants in the
United States is expected
to accelerate during the next decade. The
presence of high solar irradiance, along
with continuous pressure from the gov-
ernment to implement renewable energy
technologies, fuels demand for solar
projects. As solar energy competes with
conventional forms of electricity genera-
tion, the potential market for utility-scale
solar power plants in the country is on
the rise.
New analysis from Frost & Sullivan’s
“Analysis of the U.S. Utility-scale Solar
Power Market” research finds that the
market acquired investments of more
than $1.91 billion in 2011 and estimates
this to reach $20.44 billion in 2016.
Cumulative PV solar installations in
the United States reached 1,855 mega-
watts, with the utility-scale segment
accounting for 32.2 percent. Lower solar
module prices have led developers of
utility-scale applications, such as the
Blythe solar power project in California,
to opt for PV technologies over CSP.
“Though no new CSP plants were
installed in the United States during
2011, projects totaling more than 1.4
gigawatts were under construction,” said
Frost & Sullivan Senior Industry Analyst
Georgina Benedetti. “These projects in
the CSP segment are likely to speed up
overall market growth.”
Expediting solar installations are
renewable portfolio standards (RPS),
which mandate electricity supply com-
panies to produce a specified fraction of
their electricity from renewable energy
sources. A few states require some
portion of the RPS to come from solar
resources. Though this has led to higher
adoption, investment figures have not
gone up, as the average selling price of
solar PV modules continues to decline.
Further, restrictions in project fi-
nancing could limit investors, such as
uncertainty around the extension of cash
grants beyond March 1, 2013, as these
are an investment tax credit substitute
for developers. Because many solar proj-
ect developers do not have tax liabilities
large enough to efficiently capture the
full amount of tax credits available, they
have to rely on tax equity partners for
finances.
“To be willing to fund these projects,
banks and investors must be confident
that a power plant will operate long
enough to return their investment,”
Benedetti said. “Therefore, well-estab-
lished project developers using proven
technologies will have an advantage in
obtaining financing.”
Federal incentives such as invest-
ment tax credits and loan programs will
continue to promote large-scale commer-
cialization of solar energy and boost the
setting up of solar plants in the United
States.
Power News
Continued from page 23
demand response.
The report, “Smart Grid Consumer Survey,” details findings
from a web-based survey of 1,001 consumers in the United
States. The study assesses consumer preferences, opinions,
and awareness toward smart grid applications. More specifi-
cally, the report analyzes the dynamics of consumer demand,
preferences, and attitudes toward several key smart grid
product and service categories: smart grids and smart meters,
home energy management, time-of-use pricing, renewable
energy, prepaid electricity services, smart appliances, and
demand response. An executive summary of the report is
available for free download at
.
Solar Power Emerging from
the Shadow of Conventional Energy
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