Latin American countries eye solar power to improve electric grid, lower emissions

Mexico is a number of Latin American countries looking to increase the use of solar energy.

Latin America could significantly benefit from solar energy. Earlier this year, Renewable Energy World reported that the region has long been viewed as a key growth region for solar power, and along with the Caribbean, about 450 megawatts of grid-connected solar photovoltaics are expected to be installed in the area this year.

Latin America is home to few pure-play solar companies, which has proven to effectively attract solar project developers to the region, Renewable Energy World reported.

Five countries in Latin America have shown high promise for solar energy expansion. A recent report by the source identified Brazil, Chile, Mexico, Peru and the Dominican Republic as the most promising solar PV markets in the region.

Brazil is home to the largest electricity market in Latin America, and solar installations could help bring down the high cost of energy in the country, the source said. The country also already has a net-metering program, a tax incentive scheme and a renewable energy target of generating 27 gigawatts of power by 2020, making it an ideal place for solar expansion.

The Brazilian government also recently announced it would provide $1.5 billion in grants and loans to fund solar and other renewable energy research, Bloomberg reported. The initiative, called the Inova Energia program, will make it easier for solar power companies to commercialize their technology, making it available to more residents.

More than 2 GW of large-scale solar projects have been proposed so far in the country, and a number of 1-megawatt projects are in the works and expected to be completed before the 2014 World Cup and the 2016 Olympic Games.

Mexico and other solar energy markets in Latin America
Mexico has also set a renewable energy target: To have 25 percent of power generation come from solar and other alternative sources by 2014, Renewable Energy World reported. Electricity rates in the country vary, making energy costly in some areas. However, this has attracted more solar energy installations in order to steady these electricity rates and lower energy bills for many residents. The source said a stable economic and investment outlook in Mexico will likely continue to drive foreign investment and installations in the country.

In early May, Mexican and Spanish authorities launched a new program to provide solar energy in remote areas of Oaxaca. The program's goal is to bring electricity to 9,500 households by using solar panels. The four-year program also includes extending hours of light and installing electrical outlets in homes.

Unlike Mexico, Peru has a small electricity market. However, Renewable Energy World said its relatively mature solar market, strong renewable energy targets and low investment risk compared to other countries in the region make it an ideal spot for solar installations. PV installations could offer significant support to Peru's electricity grid. The country's disparate population and electricity transmission challenges of transporting energy through the mountainous country could benefit from reliable solar power, the source said.

Peru recently completed new PV power plants in the southern part of the country. The plants helped bump the country's solar energy production to more than 100 megawatts, Peru This Week reported. Peruvian President Ollanta Humala said the plants make Peru the top solar producing country in South America.

Chile, too, has big plans for solar energy. The government announced plans to reduce its emissions from mining smelters and will turn to solar energy to provide clean, renewable power to its residents. The Chile Energy Ministry also recently obtained $50 million in international financing to develop solar energy projects throughout the country, the National Resources Defense Council reported. The money will be used to build projects for the country's northern and central electric grids.

Tribal lands are ripe for solar power

With massive solar power installation potential, Los Angeles purchases power from nearby Moapa reservation.

In a move to become a cleaner, more sustainable city, the Los Angeles City Council recently approved a 25-year power purchase agreement for 250 megawatts of solar power from a solar installation on the tribal land of the Moapa Band of the Paiute in Nevada.

The agreement – which will provide 706,650 MW hours, enough power for 118,000 Los Angeles homes – comes as part of a larger push by the city to achieve 25 percent renewable power by 2016 and 33 percent by 2020.

"This is a defining moment for our city's economic and environmental future," said Mayor Antonio R. Villaraigosa. "Not only will these commitments create hundreds of green jobs, they will further bolster Los Angeles as a national leader in making the successful, cost-efficient transition to renewable energy. If you want proof that environmental progress and economic growth go hand in hand, look no further than today's action. We are shaking our fossil fuel addiction."

Los Angeles currently gets much of its power from the Reid Gardner coal-fired power plant – a facility that, according to the Moapa, sits right in the middle of their community. Their Moapa hope is that, by supplying solar power, the coal plant can be brought off line, a sentiment that is supported by U.S. Senate Majority Leader Harry Reid.

"Unlike the old, dirty technologies used at the nearby Reid-Gardner coal plant, this new solar project will not emit any hazardous emissions, wastes, or carbon pollution," said Reid in a statement. "I have worked hard to make sure that Nevada tribes have new opportunities to flourish and I am confident that this clean energy project will provide a meaningful opportunity to improve the quality of life for the Moapa Paiutes and nearby communities."

The 350-MW solar project is the 31st utility-scale renewable energy project approved by the Department of the Interior, and is the first on tribal land. Before the Obama Administration, there had been no utility-scale solar project approvals, according to Earth Techling.

Solar potential
According to the Argonne National Laboratory, the 55 million acres of tribal land is estimated to have the ability to produce more than 17 trillion kWh of electricity from solar energy. When combined with wind energy estimations, these figures are 400 percent of the amount of electricity generated annually in the United States.

The U.S. Department of Energy's Argonne National Laboratory recognizes the importance of this resource both for the country and for the economic well-being of the tribal population. In that vein, they are educating tribal leaders through energy internships and renewable energy challenges to stimulate interest, recruit and train a generation of renewable energy leaders.

These programs essentially act as tribal think tanks, empowering thought-leadership within tribal communities, as well as providing resources, such as the Tribal Energy and Environmental Information Clearinghouse, helps tribes develop and analyze renewable energy plans and connects them with ways to finance their energy projects. As solar technology advances and the installation prices fall, many tribes in the Southwest U.S. are planning on building solar systems in the next five years.

Financing options
A land-lease agreement is the most common form of financing a tribal project. This occurs when a tribe leases a section of land to a company who provides up front capital and installs the project. Another financing solution is through the use of federal grants provided by the Department of Energy to tribes that have a clear, practical plan with well-documented renewable resources and analysis.

The Moapa Solar Project is an example of a land-lease agreement. The plant will be built on 2,000 acres of leased tribal lands, 3 percent of their total land trust, while public land will be utilized by the Bureau of Land Management for transmission lines.

New Jersey makes strong solar commitment

New Jersey makes a strong investment in solar to boost its utility infrastructure durability.

According to a recent Bloomberg article, New Jersey's largest utility company, Public Service Enterprise Group (PSEG), has committed as much as $446 million for solar-power project investment in the state.

The utility intends on using otherwise compromised real estate – such as landfills and brownfields that cannot support commercial development or crops – to produce 42 megawatts of solar farms at a cost of $247 million. PSEG will spend an additional $199 million on 97.5 MW of new sun-powered systems through a separate program, as well as 3 MW of smaller projects.

The total investment is slotted to occur over a three-year period and is subject to public comment. The New Jersey Board of Public Utilities is expected to issue a decision by May 31, according to Bloomberg.

Other solar acquisitions
A division of PSEG, PSEG Solar Source, recently purchased a 19-megawatt solar project near Phoenix for $75 million - the fourth such solar project in its arsenal.

In addition to the Mars Solar Garden in New Jersey, PSEG also owns a solar farm in Wyandot, Ohio, and a 100-acre solar facility in Jacksonville, Florida.

For the Newark-based utility, the recent acquisitions show a growing interest and investment in the transition to renewable energy, specifically when it comes to solar power.

Recent Projects
In a recent show of support, the New Jersey Board of Public Utilities approved three large-scale, grid-supply solar systems in New Jersey, which feed electricity directly from local solar arrays into the regional power infrastructure, reducing transmission costs and easing the production strain during peak hours.

Despite the high demand for farmland in New Jersey's real estate-strapped market, the projects' benefits are so numerous for the state that the BPU approved them. The state's Energy Master Plan would like to see solar projects take advantage of underused parcels of land, like landfills, for solar development, according to Philly.com.

The three approved projects will collectively create 12 MW of solar capacity using a small portion of farmland and should be fully operational by June.

Following PSEG's push for solar development, the BPU is working with PSEG to draft a settlement that would achieve the goals of both the Energy Master Plan and the solar industry, ultimately giving PSEG the go ahead to move forward with its 42-MW plan.

Bob Hanna, the president of the BPU, noted the board's action was in line with the goals of a solar bill enacted last summer.

"The general intent of the solar legislation is to move grid-supply projects from farmland to brownfields and landfills," Hanna told Philly.com, citing the advantages of using such land for solar projects.

More projects to come
The state's overall commitment to solar power has attracted many solar companies. There are 21 solar farm project proposals in New Jersey's pipeline, and officials are currently seeking the approval of the BPU. Under a separate provision of solar legislation, the BPU can approve an additional 80 MW of grid-supply projects each year over the next three years, according to Philly.com.

The BPU noted that applications for those projects are slotted to be available by mid-May.

Hurricane Sandy
In lieu of the recent damage incurred to the PSEG utility infrastructure, solar advocates are touting the benefits of solar energy.

The PSEG has proposed a $3.9 billion, 10-year proposal to raise and fortify many of its electric switching stations and substations after such stations were submerged under stormwater. In some cases, it took crews working around the clock to clean and repair these stations to restore power to the weather-torn region.

As solar systems work to decentralize power production, the investment and use of such systems goes hand-in-hand with infrastructure repair to ensure future severe weather doesn't compromise power to millions of homes.

India solar policy to impact U.S. solar suppliers

India is set to change its solar policies, requiring thin film solar panels come from domestic companies, not U.S. or other foreign manufacturers.

India plans to change its policies regarding solar energy installations. The country wants to require solar energy installers to buy their products from domestic producers – a move that could restrict U.S. solar exports and negatively impact U.S. solar suppliers.

India is struggling to keep up with its rising electricity demands. A shaky electrical grid causes frequent blackouts and the government wants to use solar energy to provide reliable electricity to residents while creating jobs and developing a domestic solar industry, The Hill reported.

Acting U.S. Energy Department Secretary Daniel Poneman said the Obama Administration will fight these solar policies, as they may actually violate international trade rules, The Hill reported.

"At this point our view is, we are in a discussion with India," Poneman told The Hill. "Our views on … local content are clear, and we're hoping we can work through this."

The Indian policy would restrict U.S. exports of solar thin film technologies, which the Hill said "currently comprise the majority of U.S. solar exports to India." The source said some expect the U.S. Trade Representative to initiate a World Trade Organization panel investigation into the anti-import solar policy.

Policy change will impact U.S. companies
The Natural Resources Defense Council blog said the Indian government is inviting solar developers this month to bid for 750 megawatts of solar capacity – 300 MW of which will be required to use locally-made solar cells and panels. This equipment may not be imported, the source said.

Solar developers in India have previously been able to use imported thin film technologies, as the devices were exempt from India's import restrictions. If that changes, the domestic content requirement will also include thin film, the source reported.

PV-Magazine reported that the domestic content requirement in India has applied only to traditional multicrystalline panels. However, as thin film panels have become more popular, India is set to change its rules. This could negatively impact U.S. thin film manufacturers by restricting them from exporting goods to India.

About 1.5 gigawatts of PV projects are under development in India, with about 1 GW of new capacity installed by the end of the year, the source reported. In 2014, it's estimated the country will install even more installations, with solar output exceeding 2 GW.

Another California town approves solar requirement on new construction

Sebastopol, Sonoma County approve landmark solar energy legislation as California wrestles the larger solar debate.

The small town of Sebastopol, California, joins the "energy revolution" by approving legislation requiring all new housing developments to include a solar power system – a decision championed by Mayor Michael Kyes.

Sebastopol, a small liberal town of 7,400 in west Sonoma County, is 400 miles from Lancaster – the first city in California to successfully pass similar legislation earlier this year. In fact, the two towns couldn't be more different when considering their political affiliations. Yet, they are both promoting a strong commitment to solar power through powerful solar mandates.

"I think it is the obvious way to go," Kyes told The Press Democrat. "Every time you build a house you're making the matter worse."

Ann Hancock, executive director of the Santa Rosa-based Climate Protection Campaign, fully endorsed the legislation in Sebastopol, saying it is what Sonoma County wants, citing its ambitious goal of nine cities collectively dropping emissions 25 percent below 1990 levels by 2015, according to the source.

"We're in the midst of an energy revolution," Hancock said, referring to the challenge of transitioning from conventional fossil fuels to renewable sources of energy. "Bring it on."

The proposal
The ordinance would require newly constructed residential homes and commercial buildings, as well as major additions and remodels, to include a photovoltaic energy generation system.

The system would be required to provide 2 watts of power per square foot of insulated building area, or offset 75 percent of the building's annual electric load. In circumstances in which solar power is impractical, such as shaded areas, new buildings may use other energy alternatives or pay a fee. The ordinance, as is, boasts slightly more aggressive standards than the ordinance approved in Lancaster, which only requires 1 kilowatt per home.

According to Earth Techling, a 5 kW solar system – a standard size – would be needed for a 2,500-square-foot home in order to achieve 2 watts per square foot.

The measure would take effect in 60 days from the date it is approved, but would not apply to development plans already filed with the city.

Kyes noted rooftop solar power systems are fairly common in Sebastopol, which generates, on average, 1 megawatt of solar energy – enough to power 500 average-sized homes.

Councilman Patrick Slayter, who co-authored the measure with Kyes, remarked that the council's action was "on the low end of the scale [of controversy], which is welcome." The mayor further commented, saying that not only is such an ordinance cost-saving, but it's the responsible thing to do.

Part of a bigger trend in California
The new Sebastopol ordinance comes in the wake of a larger debate. Some Sonoma County officials are pushing for a public power agency, known as Sonoma Clean Power, in a series of public meetings courting major cities within its borders for support.

Ultimately, the rates proposed by the Sonoma Clean Power agency, according to Cordel Stillman – the Sonoma County Water Agency's deputy chief engineer – would be 1.8 percent lower to 1 percent higher than the rates offered by the existing utility company. For commercial customers, the rates could be 3 percent lower to 0.5 percent higher. The agency would begin with power consisting of 33 percent renewable sources, making it cleaner energy than that offered by the utility.

Hancock urged the council to support such an agency, calling it a game-changing platform that would achieve significant progress in the reduction of greenhouse gases.

Despite the support of Hancock and the public, council members are generally leery about jumping into any agreement without more concrete numbers amid fears the scope of the project is larger than members are accustomed.

Major retailers increase solar energy production

Superstores, like Walmart, are turning to solar energy to lower electricity costs and reduce greenhouse gas emissions.

Major retail chains in the United States have increasingly turned to solar energy in recent years, significantly decreasing their energy costs. Wal-Mart Stores Inc., the world's largest retailer, recently announced it planned to raise solar energy consumption and improve its energy efficiency in all its stores.

The retailer said it will procure around 7 billion kilowatt hours of renewable energy, including solar, a year by 2020 – an increase of 600 percent from 2010 levels. Wal-Mart also plans to reduce its energy consumption thanks to the solar installation by 20 percent compared to 2010 levels.

"More than ever, we know that our goal to be supplied 100 percent by renewable energy is the right goal and that marrying up renewables with energy efficiency is especially powerful," said Mike Duke, Wal-Mart president and chief executive officer. "The math adds up pretty quickly – when we use less energy, that's less energy we have to buy, and that means less waste and more savings. These new commitments will make us a stronger business, and they're great for our communities and the environment."

The future solar energy installations on Wal-Mart stores and other renewable energy projects are expected to save the company more than $1 billion in annual energy costs. The projects will also eliminate 9 million metric tons of greenhouse gas emissions by 2020.

Duke said as the corporation expands and energy costs rise, Wal-Mart has to look to solar energy and other alternative energy sources to power its stores.

"When I look at the future, energy costs may grow as much as twice as fast as our anticipated store and club growth," Duke said. "Finding cleaner and more affordable energy is important to our everyday low-cost business model, and that makes it important to our customers' pocketbooks. Our leadership in this area is something our customers can feel good about because the result is a cleaner environment. And savings we can pass on to them."

Wal-Mart already a leader in solar energy
According to the Solar Energy Industries Association, Wal-Mart has more solar power capacity and solar installations than any other company in the United States. The retailer currently has about 200 solar projects in operation or under development. Throughout the country, the company plans to install additional solar power systems on at least another 1,000 rooftops by 2020 in order to meet its renewable energy goals.

In Ohio, for example, Wal-Mart recently unveiled solar modules on the rooftops of a dozen stores, including nine in the Dayton-Cincinnati area, the Dayton Daily News reported. The installations helped the state's solar power generation jump 10 percent, and made Wal-Mart the state's leading single solar power user.

The SEIA also recently released a statement applauding the retailer for its efforts to increase solar energy usage.

"The company's decision to increase its clean energy projects by six-fold puts Walmart on a clear path to become 100 percent supplied by renewable energy by 2020," SEIA President and CEO Rhone Resch said. "This 'lead-by-example' approach will not only benefit the company's 2 million associates and 150 million shoppers, but it will also significantly reduce greenhouse gas emissions, help the U.S. economy and stimulate American innovation. It's a win-win for everyone, and Walmart should be commended for its leadership."

Other retailers going solar
Walgreens, another major retailer in the United States, has announced it will begin using more solar energy. For instance, the company said 22 locations in 14 Colorado cities will have solar energy systems installed. These new energy installations will eliminate 47.5 million pounds of carbon dioxide emissions over the next 20 years, the Denver Business Journal reported.

"A strong commitment to the local community is one of our company's core values," said Menno Enters, director of energy and sustainability at Walgreens.

Solar power plants cost effective in Oregon, study states

A new report shows that large-scale solar power plants could provide a large portion of Oregon's energy.

While many people may think Oregon is too rainy to take advantage of solar energy, a new report disproves that misconception. Large-scale solar photovoltaic power plants are now cost effective in a number of service areas in Oregon, according to the new report published by the Oregon Solar Energy Industries Association.

The study, called Vision to Integrate Solar in Oregon (VISOR), includes months of research, interviews and dialogue with experts to present a case for solar energy development in Oregon. The report states that Oregon's energy future "could include a substantial and cost-effective solar resource," and state policymakers should implement programs and goals that would make it possible for the state to produce 20 percent of its electricity from solar resources by 2030.

Rapid price decreases in PV technology have made large-scale solar power plants more affordable, the report states. New solar power plants can be constructed and maintained affordably, and they could help stabilize electricity prices, improve energy security and environmental quality, and benefit the state's energy consumers, it continues.

"Oregon could now be on the verge of a long boom in solar power plant construction, worth perhaps $10 billion in capital investment," the report stated.

Barriers to major solar adoption
While the VISOR report said it was possible for Oregon to benefit from large-scale solar, it also pointed out barriers in place that are preventing the state from doing so. Access to enough land is one problem. To have solar produce 20 percent of the state's electricity by 2030, utility-scale solar plants would need 6,000 megawatts of installed PV capacity on about 65 square miles of land, the report stated. That is about 0.07 percent of Oregon's land area and a little more than one-fourth of 1 percent of the state's agricultural land.

Oregon Gov. John Kitzhaber has previously announced his support for solar energy in the state but said land planning and an improved permitting process are needed for the industry to grow.

The state may also need to improve its interconnection processes and make upgrades to electricity transmission and distribution, the VISOR report pointed out. Authors of the report suggest a feed-in-tariff regime be designed in Oregon to accommodate utility-scale solar energy projects, as well as smaller solar PV installations on homes and businesses.

New York solar program extended through 2023

New York has extended its solar program, allowing more residents to take advantage of incentives when installing solar energy systems.

New York has extended its solar program for another 10 years. The state senate recently approved legislation that will allow New York residents and businesses to take advantage of cash incentives offered by Gov. Andrew Cuomo's NY-Sun Initiative through 2023.

The New York solar bill, called the NY-Sun Act, builds on the success of the state's solar program and solidifies the state's long-term commitment to solar. The Sun Initiative was launched in 2012 and has helped New York install a total of 242 megawatts of solar photovoltaics. These solar installations not only lower electricity prices for residents, but have eliminated approximately 120,000 tons of greenhouse gas emissions – the equivalent of taking 23,000 cars off the road, the governor's office reported.

"The NY-Sun Act will ensure these gains continue for the next decade," Cuomo said.

Residential grid-connected solar energy installations that are 7 kilowatts or less, or commercial installations 50 kW or less, are eligible for incentives through the program. New York was ranked 12th in the nation for cumulative installed solar capacity in 2012. The state invested $257 million to install solar energy systems on homes and businesses, according to the Solar Energy Industries Association.

Continuing solar growth
Supporters of the bill say extending the NY-Sun Initiative will help the state become even more of a solar leader in the United States.

"New York state must take measures to ensure that it remains at the forefront of economical power generation and the delivery of alternative and cleaner power," the bill states. "This legislation provides appropriate incentives for solar power generation by including a long-term strategy for solar expansion with an equally important goal of minimizing negative rate payer impacts."

Cuomo said program certainty is critical for solar developers to attract significant private sector investments in the industry.

"Therefore, expanding the NY-Sun program will support the growth of the solar industry across the state by providing stable and dependable funding of $150 million per year for the next 10 years," Cuomo said. "By funding NY-Sun for the next decade, the state is enabling the sustainable development of a robust solar power industry in New York, creating well-paying skilled jobs, improving the reliability of the electric grid and reducing air pollution."

The Solar Act calls for the New York State Energy Development Authority and the Public Service Commission to design cost-effective solar programs and respond to changing market conditions. The bill also requires that programs take into account how these solar initiatives will bring the maximum benefits to New York by attracting different project sizes, installing solar in areas where the electric grid would benefit the most. The installations should also aid the state's economy, the governor said.

Solar supporters applauded the extension of the New York solar program, saying it helps the industry in the state grow, which creates jobs and diversifies the electric grid.

"As a clean, renewable source of power, solar must be a major part of New York's energy future," said Dave Gahl, executive director of Environmental Advocates of New York. "It is critical we modernize our infrastructure and move away from coal and other fossil fuels which contribute to the most devastating effects of climate change. Governor Cuomo's legislation sends the message to developers that New York is ready to be a national leader in renewable energy. We applaud Governor Cuomo for his leadership on this issue and look forward to working with his administration and the Legislature to get this plan passed before the end of this legislative session."

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Latin American countries eye solar power to improve electric grid, lower emissions

Tribal lands are ripe for solar power

India solar policy to impact U.S. solar suppliers

Major retailers increase solar energy production

Solar power plants cost effective in Oregon, study states

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