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.
Read full article from Energy Industry Reports
Related Articles:
- LA & 8Minute Solar ink lowest cost solar-plus-storage deal in U.S. history (CleanTechnica) – Sept. 11, 2019
- Los Angeles OKs a deal for record-cheap solar power and battery storage (Los Angeles Times) – Sept. 10, 2019
- Los Angeles has lined up record-cheap solar power, but there’s a problem (Los Angeles Times) – Aug. 27, 2019
Opinion: An uncertain path to a cleaner future – Zero carbon electricity legislation in New York and California
By Thomas R. Brill & Steven C. Russo (Greenberg Traurig), Utility Dive
Last month, New York passed the Climate Leadership and Community Protection Act, which calls for a carbon free electricity market by 2040. With passage of this law, New York became the sixth state to pass legislation calling for a carbon free electricity market. Just one year earlier, California passed similar legislation, SB100, adopting a state policy to achieve a zero-carbon electricity market by 2045.
These goals will have to be pursued notwithstanding the fact demand for electricity is projected to increase as other sectors pursue beneficial electrification to comply with ambitious emission reduction goals they face. Whether these goals can be achieved, and at what cost, will depend on technology advancements and how these laws are interpreted and implemented by regulators.
New York’s Climate Leadership and Community Protection Act requires 70% of electricity consumed in New York be generated by renewable resources by 2030 and the state must be carbon free by 2040. California’s SB100 requires 60% of electricity come from renewable resources by 2030 and adopts a state policy of a 100% zero carbon electricity by 2045.
The New York legislation explicitly conditions meeting these extraordinarily ambitious renewable energy mandates on maintaining reliability and affordability. This leads to obvious questions: Can a zero-carbon electricity market be achieved in a manner that maintains reliability and affordability, and if so, how? What flexibility exists under these laws to ensure these emission reduction goals can be achieved even if new technologies or significant price declines fail to materialize?
Read full article from Utility Dive