Los Angeles’s Low-Priced Solar Power Has Problems Coming Its Way

By Cassie McCorkle, Energy Industry Reports

It has been more than a month that Los Angeles has signed a contract for record-cheap solar power and the officials are trying to deny it. The labor union is concerned over Mayor Eric Garcetti’s decision to put an end to the three gas-fired power plants. It has been clearly mentioned in the 25-year contract signed with 8minute Solar Energy that the Los Angeles Department of Water and Power will pay 2 cents per kilowatt-hour or lower. This is the lowest price ever waged for solar power in the US and it is lower than the cost of electricity generated from the natural gas-fired power plant. The Eland project has 200 Megawatts of lithium-ion batteries planned other than the 400 Megawatts of solar power to store solar power for a complete day and to let it into the grid for 4 Hours each night.

The combined payment of L.A. payers for solar power could be 3.3 cents per kilowatt-hour. The concerns of the International Brotherhood of Electrical Workers Local 18 have forced the City Council to not approve the contract. IBEW Local 18 is concerned that Garcetti’s “Green New Deal” initiative has shutdown 3 coastal gas plants and would result in unemployment of 400 LADWP workers. The workers consider Garcetti’s plans to create unemployment and increase electricity prices. Others may consider the current plan as a childlike proposal but as per the Mayor, the Eland project may not replace the large plants instead can help reduce the dependency on gas. The pricing of 8minute that relies on the federal investment tax credit for solar energy is expected to drop by 26% by this year end. By December, the company plans to start construction to be eligible for the 30% tax credit.

Similarly, a 500 MW project is on its way to construction, as per the Kern County Board of Supervisors. This new project is the one more addition to the long list of large projects taking place in California. This project is a part of the Eland 1 Solar Project: 8minutenergy. The project will be started only after the Eland 1 Solar is approved.

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