‘New Era’ for Solar Power, Rush of Talent into Sustainables
Large-scale U.S. solar power facilities are becoming commonplace, according to the U.S. Department of Energy. Underscoring the trend, a recent McKinsey report projects that solar will become more economically attractive, despite technological uncertainty and the continued importance of regulation. In fact the report states, “A new era for solar power is approaching. Long derided as uneconomic, it is gaining ground as technologies improve and the cost of traditional energy sources rises.”
Looking ahead, the Energy Information Administration projects energy consumption will jump 50% by 2030 due to population growth and rapid economic expansion. Many industry experts believe that solar power offers the promise of contributing a significant percentage of America’s and the world’s energy needs. According to the 2008 Utility Solar Assessment (USA) Study compiled by Clean Edge, Inc. and Co-op America, solar power could provide 10% of U.S. electricity generation by 2025. Amid the trend, talent is flocking to renewable energy – particularly solar power. Executive search firm, A.E. Feldman says there is a huge rush of talent and money into sustainables - or renewable energy sources, such as biofuels, wind power…and solar power.
Solar Power Heating Up
Within three to seven years, unsubsidized solar power could cost no more to end customers in many markets (such as California and Italy) than electricity generated by fossil fuels or by renewable alternatives to solar, according to a McKinsey. In a recent report, the group states that although the sector in still in its infancy and still faces a number of challenges… by 2020, global installed solar capacity could be 20 to 40 times its current level.
The sector’s economics are changing, according to McKinsey. The report notes that over the last two decades, as the cost of generating electricity from conventional sources rises, the expense of manufacturing and installing a photovoltaic solar-power system has dropped by about 20% with every doubling of installed capacity. Thus, McKinsey concludes, solar power has been creeping toward cost competitiveness in some areas, but the extent and speed of this emerging sector’s growth will depend on its ability to keep driving down the costs.
Future of Solar Power
“Solar power is a growing field and will meet a portion of our energy needs going forward. That means solar power will displace some of the demand for fossil fuels,” according to Steve Eber, Vice President of Emerging Markets at National Grid Energy Services - a subsidiary of National Grid, one of the world’s largest energy companies.
A wave of announced plans to build large solar power facilities throughout the U.S. seems to indicate that relatively large-scale systems are becoming commonplace, asserts the Department of Energy. The DOE lists recent examples of the trend:
- Pacific Gas & Electric Company (PG&E ) announced plans to build a 106.8-MW concentrating solar power (CSP) plant near Coalinga, California, after signing a power purchase contract for the facility with a subsidiary of Martifer Renewables Electricity LLC in June. Slated to start operation in 2011, the facility will produce power from biomass fuels when the sun is not available, allowing for constant power production.
- In June, the four largest utilities in New Mexico, including PNM, announced they are issuing a request for proposals (RFP) to build a CSP plant in the state on the scale of about 100 MW. A contract is expected to be issued by January 2009, with the goal of commercial operation by 2012. Both the California and New Mexico facilities will use parabolic trough-shaped mirrors to concentrate the sun’s heat.
- Florida Power & Light Company (FPL) announced it plans to build a 75-MW CSP facility, just east of Lake Okeechobee. The solar thermal facility will help to reduce natural gas consumption at the power plant. FPL is also making an impressive commitment to solar photovoltaic (PV) technology, with plans to install 25 MW of solar panels at a site in DeSoto County, east of Sarasota. FPL will also install a 10-MW PV project at the Kennedy Space Center.
The DOE also reports that for solar photovoltaic (PV) systems, even a 1-MW facility is quite large, and megawatt-scale systems are now planned for many parts of the country.
- Philadelphia Mayor Michael Nutter announced that a megawatt-scale PV system will be installed at the Philadelphia Navy Yard in Pennsylvania.
- In late May, Duke Energy Carolinas announced plans to “harness the power of the sun.” It will buy all the power from a 16-MW PV facility, to be built north of Charlotte, North Carolina. SunEdison LLC is building the facility and expects to have it running by 2010.
- In mid-June, Pepco Energy Services was awarded a contract to install a 2.36-MW PV system - the largest single roof-mounted solar array in the U.S. - on the roof of the Atlantic City Convention Center in New Jersey. The installation is to be completed by the end of the year.
- In late June, enXco agreed to install a 1.3-MW system and a 0.5-MW system on two warehouses in South Plainfield, New Jersey, under a contract with Hall’s Warehouse Corporation.
- On July 16th, First Solar, Inc. announced that it will install a 2-MW PV system on the roof of a commercial building in Fontana, California, and at least 7.5 MW of ground-mounted PV panels in Blythe, California.
Interest in alternative fuels is absolutely growing and attention to the sector will only increase, reports A.E. Feldman. The firm has cultivated relationships with companies that have access to the financial resources to help fund U.S. based solar initiatives. A.E. Feldman’s CEO, Carol Schwam, says the burgeoning alternative fuel industry is looking for super-brokers who can funnel money into their businesses. She notes, however, that entrepreneurs in this sector must bridge the gap between the science behind the technology and a successful business.
Right now, A.E. Feldman is one step ahead of the latest developments in renewable energy and green technology. To learn more about these issues or inquire about existing and future job opportunities in this sector, the lines of communication are open. Contact the Mitch Feldman, President of A.E. Feldman, and the firm’s cutting edge energy recruiting team here.
