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FUEL FROM THE SKY: SOLAR POWER’S POTENTIAL FOR WESTERN ENERGY SUPPLY In Exhibit 9 we show the technology mix of new western power plants that began operation in 2001, are currently under construction, or are forecast to come on-line in the future. The map in Exhibit 10 shows all power plants proposed in the West since the beginning of 1999. Independent Power Producers and Renewable Energy Today, the state of California and the rest of the West understand that an economic and regula- tory environment needs to be in place that allows for the construction or refurbishing of power plants. The question that remains is: What degree of interest do the governments of the western states have in the resource mix? The love affair of IPPs with gas-fired generation has its reasons. Currently, based on environmental and economic considerations, gas-fired power plants, even at considerably higher forecast natural gas prices, are the most rational answer to the question of what conventional power plant to build in many states, except possibly those with large coal reserves, including Colorado, Montana, New Mexico, and Wyoming. IPPs, who are unregulated, contrary to the traditional utility, have not only embraced the com- bined cycle power plant as the cleanest fossil fuel generating technology, but will also bring on- line nearly all of the 1,229 MW of wind power in 2001. In the West, 5% of all new capacity addi- tions are forecast to be wind power. IPPs are looking at all generating technologies, from gas to coal to renewables. If the public, pol- icy makers, and regulators want to create more fuel diversity and desire renewable energy gen- eration as a large contribution to western energy supplies, then regulatory certainty, tax incen- tives, and other measures need to be put in place. With the proper economic incentives, IPPs will seize the opportunity and build. Exhibit 9: New Capacity that Began Operating, Is Under Construction, or Is Forecast to Come On-line by 2005 SOURCE: NEWGEN, RDI Consulting 2% 2% 11% Total 55,277 80% MW 5% Coal Combined Cycle Combust Turbine Wind Other 19PDF Image | Solar Fuel From The Sky
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