Southwestern Utility Consortium CSP Initiative

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Southwestern Utility ConsortiumCSP Initiative
Arizona Corporation Commission CSP Open
Meeting Friday, October 6, 2006
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Background

• CSP facilities experience greatest cost
  efficiencies around 250 MW
• Today, few utilities have the appetite for a
  solar facility that large
• Joint development allows greater scale, and
  therefore lower prices than can be achieved
  individually
• Joint ownership is familiar to most utilities
  (i.e. Four Corners, Springerville, PVNGS)

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Why CSP?

• Solar is Arizonas greatest renewable resource
• CSP is the most cost-effective solar resource
• Peaking capacity when paired with storage or
  natural gas
• Potential for cost competitiveness in near future

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Participating Utilities

• Arizona - APS, SRP, TEP
• Nevada - Nevada Power
• New Mexico - PNM
• Colorado - Xcel (PSC)
• California - SMUD, LADWP, NCPA
• Texas - El Paso Electric

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Timeline of Events
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RFI - Project Parameters

• Concentrating Solar Power
• Trough
• Dish
• Concentrating PV
• 250 MW
• Transmission to Participants
• Arizona/Desert Southwest
• Commercial operation in 2010

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RFI Responses

• 7 entities
• 240 to 320 MWs
• Technologies
• 1 Dish Engine
• 1 CPV
• 5 Trough
• Various levels of information provided

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APS Preliminary Conclusions

• Sufficient developer interest
• Most cost effective solar technology
• Higher green premium than non-solar
  alternatives (i.e. wind, biomass, geothermal)
• Natural gas and/or thermal storage is necessary
  to maximize value

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Location/Priority

• Site Priorities
• Transmission to NV CA
• Natural gas supply
• Flat land - 1,500 to 2,000 acres
• Solar radiation
• Water
• Potential Sites
• Kingman
• Red Lake
• Bullhead City
• Yuma
• Snowflake

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Critical Issues

• Joint Development Group
• Commitment
• Legal Structure
• PPA Structure
• Site Location
• Land
• Transmission
• Natural gas
• Water
• Regulatory Support