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FUEL FROM THE SKY: SOLAR POWER’S POTENTIAL FOR WESTERN ENERGY SUPPLY The only meaningful amount of non-hydro renewable generation as a percentage of total supply is found in California, where about 1,750 MW come from wind farms, 354 MW from thermal solar power plants, and 2,595 MW from geothermal generation. Texas also recently saw large amounts of new wind capacity installed in response to requirements of the state’s renewable energy portfolio standard. Nevertheless, aside from the large amounts of hydro capacity in the Northwest (and some in California), renewable energy sources play a small role in western energy supply. Increasing the share of non-hydro renewable energy sources will require a conscious effort on the part of the western states. As we will show later, wind and solar appear to be the primary sources of renew- able energy available in the West. Fortunately, the West has large amounts of both. Current Power Plant Development For a decade, little new generating capacity was built in the U.S. and the West, and the excess generation capacity created in the 1970s and early 1980s began to shrink. This was due to: ● the Arab oil embargo during the 1970s; ● the resulting extremely high inflation that caused significant increases in the costs of power plants then under construction; ● the rise of environmental awareness after Earth Day in 1970; ● the passage of the Fuel Use Act, which prohibited the use of natural gas as a fuel for new power plants; ● the accident at Three Mile Island, which significantly increased the cost of new nuclear generation; ● the passage of the Public Utility Regulatory Policies Act (PURPA); and ● the unwillingness of state regulatory commissions to allow utilities to recover the cost of their investments in new power plants. These historical events all combined to reduce utilities’ willingness to build additional generation. By the middle of the 1990s, it became clear that new generation would be needed to meet new demand, which had continued to increase due to population growth and the longest economic expansion in U.S. history. With the passage of the Energy Policy Act in 1992, it became clear to utilities that deregulation appeared to be the future for the industry. And as deregulation was originally conceived, one of the features was that utilities might be required to divest themselves of their generation. 17PDF Image | Solar Fuel From The Sky
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