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Sempra solar energy project brings grid parity in cost effectiveness

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Generating clean electricity that's as cheap as power from fossil fuels is the Holy Grail of green-energy companies. A new solar project powering California homes appears to be closing in on that prize.

Sempra Generation, a subsidiary of Sempra Energy in San Diego, just took the wraps off a 10-megawatt solar farm in Nevada. That's small by industry standards, enough to light just 6,400 homes. But the ramifications are potentially huge.

A veteran analyst has calculated that the facility can produce power at a cost of 7.5 cents a kilowatt-hour, less than the 9-cent benchmark for conventional electricity.

If that's so, it marks a milestone that renewable fans have longed for: "grid parity," in which electricity from the sun, wind or other green sources can meet or beat the price performance of such carbon-based fuels as coal and natural gas.

"We now have an alternative-energy source that can actually deliver cost-competitive electricity with no subsidies," said Mark Bachman, senior equity analyst for Pacific Crest Securities in Portland, Ore.

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For the first nine months of 2008, First Solar posted revenue of $812.7 million and net income of $215.6 million. Those figures were more than double the results of the same period a year earlier.

Some energy wonks are likely to dispute Bachman's conclusion that the El Dorado project has achieved grid parity. Most focus on the per-watt installation cost of such systems.

What's clear is that the costs of solar power are dropping dramatically across the industry as the technology is more widely adopted and producers become more efficient. First Solar Chief Executive Michael J. Ahearn said his company had cut the cost of manufacturing its modules by 67% over the last four years.

"The photovoltaic industry," Ahearn said, "is much closer to generating affordable solar power than most people realize."
  • added January 05, 2009
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18 responses // Sempra solar energy project brings grid parity in cost effectiveness

  •  

    As someone who has dreamt of seeing this happen since I was twelve years old, this is a good step forward! Perhaps this year there will be something hopeful to come out of this... We will see a solar USA. TAKE THAT, "CLEAN COAL." We will make a cleaner safer planet for our children.

    recommended by metalcookiesxy70
    JanforGore
  •  

    That's great news, should be called a "grid party." The only drawback to solar is that the sun goes away at night. Unless the energy is stored via batteries, solar is useless during night time hours. But at least it will take care of the daytime needs, good start, for sure.

    pjacobs51
  •  
    http://www.youtube.com/watch?v=GV0NS6of6rc

    Actually, MIT may well have found a way to do that. I posted about this a few months ago. Here is the video.

    JanforGore
  •  

    BOOYAH!

    onechance
  •  
    http://current.com/items/89160461/cheap_solar_at_nig...

    Here is the entry:

    Cheap Solar At Night? MIT May Have Answer Within A Decade

    To have clean cheap solar energy that is cheaper than coal and that can be stored at night within a decade is a dream come true. And we CAN make it happen.

    JanforGore
  •  
    http://www.youtube.com/watch?v=S82cQ0nRMMM

    I think a little optimism is what we need now.

    JanforGore
  •  

    That's good news!

    hydrokat
  •  

    Oh man, good news. Can we handle it?

    lamborghini
  •  

    215 million net income?

    Not too shabby.

    If this keeps up the market will eat fossil fuels alive.

    The fortunate thing is that fossil fuels will never win, anyway, because they are more and more expensive over time to harvest.

    This is the turning point, ladies and gentlemen.

    CreditFigaro
  •  

    Spread, just keep on spreading it.

    cerealforeal
  •  

    we knew it could be done.

    ninja_tiger
  •  

    All the really clever life forms get their power from the sun , wind , water currents , or geothermal activity .

    artemis6
  •  

    I can't wait to have this technology for my house....

    BFAM_RVS
  •  

    I can't wait for this new technology that will surely put a huge gain for the environment and for the economy...

    metalcookiesxy70
  •  

    Positive healthy changes have finally started to push fossil fuels closer to extinction. Environmentally sane momentum will one day finish the job.

    "Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has." ~ Margaret Mead

    darkhorsejim
  •  

    right in time for a push from the incoming administration. definitely a monumental time if we continue to be vocal about our goals and don't allow the oil and coal companies to kill these deals behind the scenes.

    great article!

    jh64487
  •  

    Lets keep in mind the cost calculation was done by a stock investment analysts! He did not even include the installation cost in his calculation ! Most solar energy expert expect cost parity in 5-10 years depending on the energy price of your individual market in the USA. That is why we have the much needed government subsidies.

    cheaney40z
  •  

    People would have to think of solar installation as a long term investment to eventually see savings over a few years. The initial install will cost $$$$ but the environmental effects and the overall savings in the technology would be huge. Panels would have to be designed for easy replacement install as well, so costs down the road don't continue.

    MKphoto

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