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Solar Fuel From The Sky

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Solar Fuel From The Sky ( solar-fuel-from-the-sky )

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FUEL FROM THE SKY: SOLAR POWER’S POTENTIAL FOR WESTERN ENERGY SUPPLY able was 1999. Hourly prices are for SCE prior to the California energy crisis. The extensive transmission interconnections in the Southwest result in small price differentials across the entire region. It is for this reason that SCE hourly prices can be used as a proxy in this analysis. In Exhibit 30 we show a scatter plot of hourly power prices versus solar radiation during the south- western electric peak demand months of July, August, and September. If sunshine and demand were correlated, that is, if a solar power plant were indeed a peaking plant, then the trend line in the scatter plot in Exhibit 30 would have a positive slope (that is, it would climb from the lower left corner to the upper right corner). However, the trend line is flat. This shows that instantaneous solar energy production and wholesale prices during peak months are not correlated. Therefore, solar power plants that produce power proportional to the instan- taneous solar radiation do not target peak prices in the Desert Southwest. Some correlation between local load and local solar radiation may exist, but this is unlikely given the daily and monthly offset of average load and solar radiation. In addition, as long as a region- al wholesale market exists, the economics of power will be governed by the regional price. The result of this analysis greatly simplifies our dispatch model, since it was unnecessary to cor- relate the hourly radiation of our artificial sun to the hourly electricity price stream. Exhibit 30: Hourly Wholesale Prices in Southern California Edison versus Solar Radiation in Daggett, Mojave Desert, July 1–September 30, 1999 Source: RDI Consulting 64 Hourly Wholesale Price $/MWh

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