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FUEL FROM THE SKY: SOLAR POWER’S POTENTIAL FOR WESTERN ENERGY SUPPLY On the other hand, demand for higher power quality for electronic devices could put upward pressure on reserve margins. Overall, consumers may demand a higher power quality than in recent history—but certainly not at the level demanded by server farms. This is because power quality comes with a cost, and the value of 99.9999% power reliability to consumers is likely to be much lower than thought. Server farms will meet their power quality needs internally. And, as computers become more portable in the form of battery-powered laptops or personal digital assistants (aka PDAs) and less dependent on instantaneous availability of grid power, power quality may not be that important. The Need for Large Amounts of Capacity Additions Existing Resources As of 2001, a total of about 237,078 MW of capacity was installed in the West.12 Exhibit 7 shows the capacity mix in each region. The West is characterized by large amounts of gas- and coal-fired capacity, which account for 24% and 44%, respectively, of the electricity generated. That is, over two-thirds of western electricity is derived from fossil fuels. Overall, hydroelectric capacity accounts for 22% of the capacity and 18% of the generation in the states of the WGA. This is because the large amounts of hydro capacity in the Northwest are offset by virtually no hydro capacity in Texas—the largest load region in the West. The nuclear plants in the West account for 7% of the capacity and 11% of the electricity generat- ed. Generation from other sources amounts to 2% of all generation in the West, of which about 1.5% comes from non-hydro renewables. Great differences in the generation mix exist across the various regions, as can be seen in Exhibit 7. The generation in GWh by fuel type in the West for 2001 is shown in Exhibit 8. The large amount of hydroelectric capacity in the Northwest provides power to California and the Southwest, but increasing demand in the Northwest and recent low hydro conditions have result- ed in less hydro capacity available for exports to the south than in the past. California is unique among western states in that it relies on imports from other states for a significant portion of its power needs and that the state has practically no low-cost coal-fired generation. In contrast, generation in Colorado and Wyoming is dominated by coal with over 75% of the capacity. The Colorado and Wyoming region is the only area that has no nuclear capacity. One nuclear project, Fort St. Vrain in Colorado, retired prematurely because of high maintenance costs and has recently been repowered as a natural gas-fired combined cycle plant. The presence of a low- cost supply of natural gas has made Texas a leader in gas-fired power plant development. No other region in the West, indeed the country, has as much generation coming from modern gas- fired combined cycle plants as the Lone Star state. 15PDF Image | Solar Fuel From The Sky
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