An investor-owned power utility in the northwestern USA state of Idaho (population 1.6 million – South East Queensland has 3.3 million) could add 461 megawatts of solar-generating capacity to its system by 2016. If all of those plants are built, Idaho Power would have a total of 1,253 megawatts of new green power on its grid, said Brad Bowlin, an Idaho Power spokesman. Last year, Idaho’s peak load was 3,407 megawatts in July, which would make green power 37 percent of its system.And that’s not counting the 1,700 megawatts Idaho Power can produce at its hydroelectric dams.Developers have signed contracts to sell electricity to Idaho Power from the 16 projects in Idaho and Oregon under a federal law that requires the utility to buy power to encourage small and alternative energy producers at the same rate it would cost the utility if it had to build its own, new natural gas plant. That is, instead of getting a subsidy, the renewable energy projects are seen as helping to avoid the construction of new gas-fired power stations, or to put it another way, they are forced to compete on price with a notional new gas-fired power plant.
This results in the renewable energy companies being paid for the electricity at what is called the “avoided cost” rate. Even with the low cost of natural gas, solar-panel prices have dropped so much that developers can make money by earning the avoided-cost rate, even while paying to connect to Idaho Power’s grid and paying the utility the cost of providing backup power sources when the sun goes behind clouds. They also can make the projects work without counting on the sale of renewable energy credits.
Why can’t this work in Australia? Are we lacking in imagination? Are we being told lies about the competitiveness of renewable energy generation? Is there a concerted attempt at State and Federal levels to look after friends with fossil-fuel fired generation plants? Is it because too many of our governments own electricity generation or power distribution assets?
What about coal-fired power plants in Idaho? Well, Idaho Power, the utility that has signed up for the solar powered electricity, owns two coal-fired power plants in Wyoming and Nevada in partnership with other utilities, but it is phasing out the coal plants gradually, so as not to risk the stability of its system and to avoid extra costs to its ratepayers.
Source: Barker, R. (2014). Idaho Power: Ready to become a green giant? Idaho Statesman November 19, 2014Idahostatesman.com. Retrieved November 20, 2014, from http://www.idahostatesman.com/2014/11/19/3494880_idaho-power-ready-to-become-a.html?sp=/99/1687/&rh=1 Click on the link for the whole article.