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Released November 21, 2014 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The world's largest concentrated solar power (CSP) project, the Ivanpah Solar Electric Generating System (ISEGS), located in the Mojave Desert, only recently came online and is already running into significant issues. The plant is jointly owned by NRG Energy Incorporated (NYSE:NRG) (Princeton, New Jersey), BrightSource Energy Incorporated (Oakland, California) and Google (NASDAQ:GOOG) (Mountain View, California).
View Plant Profile - 1075065
Not Enough Energy Produced
Theoretically, ISEGS Unit 1 can produce 118 megawatts (MW) (net); Unit 2 can produce130 MW; and Unit 3 can produce 117 MW. Together, these three units were expected to produce 1 million-plus megawatt-hours (MWh) per year. According to U.S. Energy Information Administration data, the ISEGS produced 254,263 MWh from January through August. This is slightly more than one-quarter of the production target for the year.
Even if the weather remained sunny for the rest of the year, the ISEGS would not get halfway to its production target.
The ISEGS was close to being ready for production in December 2013 and officially went online in February this year. One month later, the facility's owners asked the California Energy Commission (CEC) to allow them to increase the amount of natural gas burned at the plant by almost 60%. The CEC approved the request to increase the maximum allowable annual fuel usage limit for boilers from 328 million standard cubic feet (mmscf) of natural gas to 525 mmscf. The request for the increase was submitted in March and approved in September.
CSP is more complicated and more costly than photovoltaic (PV) solar. Rather than power being produced in the individual PV array, CSP concentrates the sun's rays in one of two ways: by reflecting the sun's rays toward a single target, or by concentrating the rays within parabolic troughs. The former method is being used at ISEGS, and relies on heliostats, mirror-like reflectors that concentrate the sun's rays on a "power tower," where water is boiled to produce steam to drive turbines that generate electricity. The natural gas is used to turn the turbines at the plant when there is not enough solar energy.
The ISEGS is part of California's drive to meet its renewable portfolio standard (RPS), which requires 33% of all electricity consumed in the state to come from renewable sources by 2020.
Federal Grant Sought
The ISEGS cost $2.2 billion to build, and used $1.6 billion in federal loan guarantees. Now, the project's developers are applying for a grant under the U.S. Department of the Treasury's 1603 Program.
According to Treasury: "The purpose of the 1603 payment is to reimburse eligible applicants for a portion of the cost of installing specified energy property used in a trade or business, or for the production of income. A 1603 payment is made after the energy property is placed in service; a 1603 payment is not made prior to, or during, construction of the energy property."
ISEGS's developers are doubtless hoping that the plant eventually will meet its design objective, but taxpayers are not likely to support the idea of profitable companies like NRG and Google getting a grant to repay a federally guaranteed loan.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
View Plant Profile - 1075065
Not Enough Energy Produced
Theoretically, ISEGS Unit 1 can produce 118 megawatts (MW) (net); Unit 2 can produce130 MW; and Unit 3 can produce 117 MW. Together, these three units were expected to produce 1 million-plus megawatt-hours (MWh) per year. According to U.S. Energy Information Administration data, the ISEGS produced 254,263 MWh from January through August. This is slightly more than one-quarter of the production target for the year.
Even if the weather remained sunny for the rest of the year, the ISEGS would not get halfway to its production target.
The ISEGS was close to being ready for production in December 2013 and officially went online in February this year. One month later, the facility's owners asked the California Energy Commission (CEC) to allow them to increase the amount of natural gas burned at the plant by almost 60%. The CEC approved the request to increase the maximum allowable annual fuel usage limit for boilers from 328 million standard cubic feet (mmscf) of natural gas to 525 mmscf. The request for the increase was submitted in March and approved in September.
CSP is more complicated and more costly than photovoltaic (PV) solar. Rather than power being produced in the individual PV array, CSP concentrates the sun's rays in one of two ways: by reflecting the sun's rays toward a single target, or by concentrating the rays within parabolic troughs. The former method is being used at ISEGS, and relies on heliostats, mirror-like reflectors that concentrate the sun's rays on a "power tower," where water is boiled to produce steam to drive turbines that generate electricity. The natural gas is used to turn the turbines at the plant when there is not enough solar energy.
The ISEGS is part of California's drive to meet its renewable portfolio standard (RPS), which requires 33% of all electricity consumed in the state to come from renewable sources by 2020.
Federal Grant Sought
The ISEGS cost $2.2 billion to build, and used $1.6 billion in federal loan guarantees. Now, the project's developers are applying for a grant under the U.S. Department of the Treasury's 1603 Program.
According to Treasury: "The purpose of the 1603 payment is to reimburse eligible applicants for a portion of the cost of installing specified energy property used in a trade or business, or for the production of income. A 1603 payment is made after the energy property is placed in service; a 1603 payment is not made prior to, or during, construction of the energy property."
ISEGS's developers are doubtless hoping that the plant eventually will meet its design objective, but taxpayers are not likely to support the idea of profitable companies like NRG and Google getting a grant to repay a federally guaranteed loan.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
