Renewable energy in Nevada has a number of often debatable elements. The Las Vegas Chamber of Commerce asked two industry-savvy members to weigh in on what are anticipated to be leading issues on the renewable energy front in 2010 and beyond.
I am not an employee of NV Energy. Rather, they are a customer of Siemans. Therefore, this is my basic interpretation of the current situation as a vendor that is part of the industry.
The Nevada Legislature continues to pass legislation that requires that the local regulated utility, NV Energy, increase the percentage of renewable power generation that it provides to its customers, typically in the form of wind, solar, or geothermal power. The renewable requirement that NV Energy must meet is the RPS, or Renewable Portfolio Standard. The RPS is defined as the percentage of total retail kilowatt hour sales that NV Energy must provide through renewable power generation.
The new RPS guidelines require that 20 percent of NV Energy's total retail kilowatt-hour sales be provided by renewable sources by 2015. Then, the renewable portfolio standard increases to a requirement of 25 percent of total retail kilowatt hour sales from renewable generation sources by 2025. It's important to mention that there is a provision that enables NV Energy to meet up to 25 percent of the RPS requirement through conservation and efficiency improvements to the existing system, as opposed to adding new renewable generation sources.
As a result of this aggressive increase in renewable requirements, NV Energy is going out to the market twice a year to solicit offers from renewable energy developers for renewable projects. As of this year, the legislature is also enabling NV Energy to purchase renewable power from a renewable source located outside of the state of Nevada in order to meet RPS requirement. What this all amounts to is a steep increase in the reliance of renewable power generation sources in Nevada, and an overall decline in the reliance and use of the existing fossil fuel power plants. This then has very controversial ramifications in terms of the rates that consumers will pay for their power as the legislature continues to increase the requirement for renewable generation sources in Nevada.
Renewable sources are generally more expensive. My understanding is that the renewable growth is being, to a large extent, subsidized at this time in order to make it more competitive. Of course, when the assistance runs out or is discontinued, there is a lot of concern that the rate payer will take a huge hit financially. Unfortunately, some are concerned that these types of ramifications are not being communicated or discussed openly enough at this point.
NV Energy is strongly committed to both large and smallscale renewable energy developments. We currently have contracts for more than 500 megawatts of renewable energy. We also are investing directly in new companyowned renewable projects.
In 1997, Nevada became one of the first states to set a standard for investor-owned electric utilities to generate power from renewable resources. The legislature-mandated Renewable Portfolio Standard has been increased several times since then, and is one of the country's most aggressive. It calls for continually increasing the percentage of renewable energy in NV Energy's supply mix. In 2008, NV Energy was able to meet the Standard. As the Standard increases, the company has plans to bring on more renewable projects so that renewable energy will make up at least 25 percent of power sold to customers by 2025. Currently, 27 renewable energy plants help power NV Energy customer needs. Those renewable plants include a wide range of geothermal, solar, wind, waste heat recovery, hydro and biomass sources.
NV Energy is a leading renewable energy provider. Across the nation, NV Energy ranks 1st in geothermal watts per person and 3rd in solar power capacity. Three new geothermal plants totaling 120 megawatts are under construction, adding to the 200 megawatts already in operation. The 64 megawatt Nevada Solar One plant is the largest solar energy facility built in the last 15 years, and the 14 megawatt Nellis plant is the largest photovoltaic solar facility in the Western Hemisphere. In partnership with RES Americas, NV Energy is co-developing a 200-megawatt wind project near Jackpot, Nevada. Called the China Mountain Wind Project, this will be Nevada's first major wind development, and is expected to be operational by 2012.
Additionally, NV Energy is currently soliciting proposals from renewable energy providers and developers throughout our region. NV Energy has issued an RFP to interested parties with the intent of securing electric power requirements and the associated portfolio energy credits from renewable resources under terms and conditions favorable to NV Energy's customers.
This RFP is consistent with NV Energy's objective to obtain safe, reliable and adequate power supplies for its customers at the lowest reasonable cost and in an environmentally-responsible manner.
By 2015, NV Energy expects to have spent more than $2 billion on purchases and investments in new renewable energy and the required transmission lines that will be used to meet the Renewable Portfolio Standard.
To learn more about the Las Vegas Chamber of Commece Green Iniative go to www.lvchamber.com/programs/green or call 702.641.5822.
The views expressed in this article are opinions of the author and may not reflect the view of the Las Vegas Chamber of Commerce.
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