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PCCA Journal|3
rd
Quarter 2015
22
Power News
Continued from page 21
Study Shows States with Carbon
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S
tates participating in the
Regional Greenhouse Gas Ini-
tiative (RGGI) have found that
regulating carbon emissions
from power plants through market-based
mechanisms goes hand-in-hand with
economic benefits. That’s the conclusion
of a new report from Analysis Group,
released in July at the National Associa-
tion of Regulatory Utility Commissioners
conference in New York, N.Y. The report
findings provide valuable lessons for
states across the country now evaluat-
ing their options under the Clean Power
Plan, the EPA’s proposed effort to limit
carbon emissions from power plants
across the country.
“Based on an analysis of years of hard
data, RGGI shows that multi-state, mar-
ket-based carbon control mechanisms
work and can deliver positive economic
benefits,” said Analysis Group Vice
President Paul Hibbard. “That’s not to
say programs designed to cut greenhouse
gas emissions are economic development
programs—their goals are different. But
the data clearly show that cutting carbon
emissions can be a net positive for the
economy.”
The report, “The Economic Impacts
Solar Heats Up Ahead of ITC Deadline
T
here has been a noticeable increase in the num-
ber of photovoltaic (PV) projects in the United
States aiming to be operational before the expira-
tion of the 30 percent federal energy investment
tax credit (ITC) on December 31, 2016.
According to IHS, a leading global source of critical infor-
mation and insight, more than 32 gigawatts (GW) of projects
greater than 5 megawatts (MW) in size are still in develop-
ment or under construction. Not surprisingly, the main bulk
of projects is in California, but several other states have many
large utility projects in development aiming for completion
this year or next.
Based on the latest information from the IHS Solar Deal
Tracker database, NextEra has indicated that 1.5 GW of
Hanwha Q Cells modules will be installed by the end of 2016.
This purchase will cover projects in several states, including
California, Georgia, Florida, and Hawaii.
“Canadian Solar dramatically increased its project pipeline
in the United States, with the company’s recent acquisition
of Recurrent Energy,” said Christine Beadle, senior analyst
for IHS Technology. “Many of these projects are set to be
completed prior to the 2016 deadline, including a 150 MW
project for Austin Energy in Texas and several other projects
in California.”
Lengthy delays in permitting and approval—or the inability
to secure a power off-taker—could be critical, as develop-
ers strive to complete projects in all states in time to be
operational and to qualify for the federal ITC. Some areas
in California are plagued with contentious environmental
issues, from Native American Tribes fearing the removal
or destruction of artifacts from their ancestral homeland to
environmental issues. One project, Imperial Solar Energy
Center West, was already under construction when work was
halted for a few weeks earlier this year because the flat-tailed
horned lizard became a possible candidate for protection
under the California Endangered Species Act.
“Newly proposed projects appear to be primarily located in
less contentious areas and developed at sizes that are likely
to promote a high potential for success in a short time,”
Beadle said. “Recent project approvals by the Bureau of Land
Management encourage installations in designated Solar
Energy Zones.”
The most recent wave of proposed projects is in the 20
MW to 100 MW range. Some projects have been in develop-
ment for a long time, but when size and location are optimal,
there is a greater likelihood of success. Other projects in less
optimal areas will eventually be completed, but possibly not
before the deadline, which seems to have affected priorities
and caused a saturation of PV projects in certain areas.
If no bill to extend the deadline is enacted, the federal
ITC for commercial and utility solar projects will drop to 10
percent in 2017. Completion of these projects prior to the
deadline could be crucial to ensure financial viability. Any
extension of the 30 percent federal ITC into 2017 or beyond
would certainly be a positive driver for U.S. solar growth
after 2016, as these early-stage projects will be ready to go
into construction; however, at this time an extension looks
unlikely.