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The addition of some types of renewable-energy generating sources adds a fourth type of power. “Non-firm” power is power generated only when the renewable resource is available, for example, power from wind turbines. Utilities tend to place a lower value on non-firm power because it generally provides fuel savings, but not capacity unless the output of the non-firm source can be shown to be highly correlated to the utility’s load profile. Benchmark Cost of Energy: Table 2-2 summarizes the market value of the various classes of power plants and indicates the types of solar plants that can serve these markets. Because of the intermittent nature of solar energy, serving baseload and intermediate markets on demand requires either energy storage or hybridization, which provides the capability to use other fuel sources to generate energy when needed. Also, solar energy is available much of the time that it is most needed—for example, during hot summer afternoons and evenings when air conditioners are running full blast. A few hours of energy storage, whether in batteries or thermal media, enable solar systems to supply that demand. Solar-System Economics: A utility evaluating the viability of building a large solar power plant in a regulated environment will consider the LEC from the solar plant relative to costs associated with conventional plants (Table 2-2). A more likely scenario is that a third party will build a solar plant and will sell power into the wholesale market. In this case, the determining factor in assessing project viability is the wholesale price of power, which is also indicated in the table. Market demand for renewables, driven by a renewable portfolio standard or customer choice, may lead to higher wholesale prices for solar power than for nonrenewable alternatives. Table 2-2. Market Value of the Various Classes of Power Plants Solar Energy Technologies Program Multi-Year Technical Plan 16PDF Image | Solar Energy Technologies Program
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