Edison Powers 2 MW Solar Project of Hoped-for 250 MW System

Southern California Edison threw the switch December 1 on a small corner of its hoped for 250 MW photovoltaic system expected to be installed on leased warehouse roofs that will feed into its distribution lines. The completed 2 MW thin-film solar project--which supplies peak power—sits atop a giant ProLogis warehouse rooftop in Fontana. "Projects like this one show the world you can protect the environment and also pump up the economy," said Governor Arnold Schwarzenegger who flipped the switch of the system consisting of 33,700 solar panels. Over the next five years, hundreds of thousands of additional panels are expected to be placed on industrial roofs in the area if the utility wins regulatory approval. Critics question Edison’s plan because of its cost and potential to shut out small solar system developers. "If SCE is going to procure renewable energy, they should be doing so in the most cost-effective manner," said Christopher Clay, Division of Ratepayer Advocates staff counsel. The division is concerned that the utility-owned solar systems may be more expensive than similar systems installed by independent renewable energy developers. Instead of allowing the utility to go forward, the division asked the California Public Utilities Commissionlate last month to set a feed-in tariff. Under it, utilities would be required to purchase renewable energy from independent developers at a fixed rate under standard contract terms approved by regulators. Last March, Edison asked the CPUC to approve an $875 million plan to install 250 MW of solar generating capacity on leased warehouse roofs in the Inland Empire region of Southern California. Edison would own and operate the systems in an area spanning the hot and populous portions of Riverside and San Bernardino Counties, where air conditioning use on hot summer afternoons causes power demand to surge (Circuit, April 4, 2008). Edison told the CPUC that the systems would increase generation of renewable energy, particularly during times of peak load, and boost the solar energy industry in the state. The CPUC is expected to rule next March on Edison’s 250 MW solar installation plan. Power produced by the solar installation counts toward the utility’s 20 percent renewable energy portfolio standard. Under Edison’s plan, the utility would get a guaranteed rate of return based on its investment in the rooftop solar systems irrespective of how much energy actually produced. Edison maintains that it can produce solar power at a rate less expensive than systems installed under the California Solar Initiative. To boost efficiency at the first installation opened this week—considered a pilot project under the plan before the CPUC—Edison chose advanced thin film solar panels produced by Tempe, Arizona-based First Solar. Edison is seeking to fill a gap in the state’s current solar market. On the small system end is the California Solar Initiative, which aims to put solar projects on homes and buildings only large enough to meet their power needs. Such systems typically cost between $6.56 and $7.08/watt to install, according to the utility. Edison estimates it can install the larger 1-2 MW solar systems on warehouse rooftops at a capital cost beginning at $5.50/watt of capacity this year. It projects the cost would decline to $3.76/watt by 2013. Including a 10 percent contingency, Edison said that the capital cost for its 250 MW program would total $962.5 million. Operation and maintenance costs would be additional. When it asked the CPUC to approve its warehouse rooftop plan, Edison said that the 1-2 MW solar systems would feed its distribution system directly, eliminating the need for transmission. Warehouses are a good place for such systems, the utility added, because they typically have low power loads and would not need such large solar systems to meet their own needs. Edison already has chosen the company to supply panels for a second pilot project slated for a large industrial building in Chino. What They’re Saying: "A program of this scale could transform solar generation, helping bring costs down and providing us with another important way to meet the environmental challenges of the future." Ted Craver, Edison International chair and chief executive officer. "SCE’s 250 MW solar rooftop initiative brings essential energy sources to the grid quickly." John Carrington, First Solar executive vice president of global marketing and business development. "A feed-in tariff would enhance competition and significantly lower ratepayer risk due to the pay-for-performance nature of the tariff." The Division of Ratepayer Advocates.

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Edison Powers 2 MW Solar Project of Hoped-for 250 MW System

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