Southern California Edison Signs Solar Power Contract

Edison International's (EIX) Southern California Edison unit, the largest electric utility in California and a major U.S. purchaser of solar energy power, has contracted with privately-held BrightSource Energy for 1,300 megawatts of solar power, or enough to serve nearly 845,000 homes.

The first of the solar power plants could be operating within four years, said the utility, which serves a population of more than 13 million, signed two contracts on Tuesday for almost 2,000 gigawatt-hours of wind power. Terms of the agreement were not disclosed.

The deal comes as the solar-power industry has become increasingly pessimistic about the sector's short-term future, with many in the industry cutting production or lowering their outlook to reflect lower demand. Clean energy's momentum is also being stalled by the financial meltdown and lower oil and gas prices. Still, longer term the companies are expected to profit as governments seek to cut greenhouse gas emissions.

Meanwhile, demand for solar power in California is soaring despite the economic downturn, according to a report state regulators issued in late January. California homeowners, businesses and local government agencies installed 158 megawatts of solar panels in 2008, double the amount installed the previous year, the California Public Utilities Commission said.

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Two Large Solar Plants Planned in California

Companies will build two solar power plants in California that together will put out more than 12 times as much electricity as the largest such plant today, the latest indication that solar energy is starting to achieve significant scale.

The plants will cover 12.5 square miles of central California with solar panels, and in the middle of a sunny day will generate about 800 megawatts of power, roughly equal to the size of a large coal-burning power plant or a small nuclear plant. A megawatt is enough power to run a large Wal-Mart store.

The power will be sold to Pacific Gas & Electric, which is under a state mandate to get 20 percent of its electricity from renewable sources by 2010. The utility said that it expected the new plants, which will use photovoltaic technology to turn sunlight directly into electricity, to be competitive with other renewable energy sources, including wind turbines and solar thermal plants, which use the sun’s heat to boil water.

“These market-leading projects we have in California are something that can be extrapolated around the world,” Jennifer Zerwer, a spokeswoman for the utility, said. “It’s a milestone.”
Though the California installations will generate 800 megawatts at times when the sun is shining brightly, they will operate for fewer hours of the year than a coal or nuclear plant would and so will produce a third or less as much total electricity.

OptiSolar, a company that has just begun making a type of solar panel with a thin film of active material, will install 550 megawatts in San Luis Obispo County. The SunPower Corporation, which uses silicon-crystal technology, will build about 250 megawatts at a different location in the same county.

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