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FUEL FROM THE SKY: SOLAR POWER’S POTENTIAL FOR WESTERN ENERGY SUPPLY In 2001 Electricity Supply in the West Remains Tight In the first six months of 2001, California had rolling blackouts on six days. A report by the California Independent System Operator (Cal ISO) published in March 2001 painted a gloomy pic- ture of the summer and stated that “minimizing blackouts will require ... a bit [of] luck.” The cat- aclysmic events of late 2000 and the spring of 2001, with massive power curtailments in the state, sent a shock wave through the Golden State. As a result, consumers have made great strides in conserving energy. Data by the California Energy Commission indicate that the state’s peak demand in August 2001 was 8.9% below expected levels, even though the month belonged to the top quartile of warm August months in California, where peak demand is strong- ly influenced by summer temperatures. In the end, Californians made their own luck. Conservation measures, the startup of about 2,000 MW of new capacity by July 2001, the return of generating units to service after maintenance, a slight easing of drought conditions in the Northwest, and more gradual load control procedures during system emergencies effectively avoided outages during the summer and early fall. In addition, weather conditions in the state were rather modest, even though August was warmer than usual. The supply shortage in California, the most populous state in the West and the sixth largest economy in the world as measured by gross state product, has sent ripples across the West, especially into the Northwest, an area strongly interconnected with California. High power prices in California also resulted in higher prices in the Pacific Northwest. Other states of the WGA experienced higher prices as well or the political reverberations from the California crisis. Coloradans hurried to hold an energy summit to assess the situation in their state, while Texas rested in the comfort of having more than adequate generating capacity. In 2001, electric energy supplies in the West remained tight. Elsewhere, regions that had previ- ously been critically short reached balance or near balance as a result of new power plants com- ing on-line. New supply additions and demand growth in the West from 1970 through 2004 are reflected in Exhibit 2. The core of the problem that led to the electricity crises in the West is also reflected: Supply additions in the 1990s fell far short of demand growth, and demand even- tually outgrew supply. 5PDF Image | Solar Fuel From The Sky
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