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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.