Nevada, U.K. collaborate on renewable energy

Kevin Rademacher

Thursday, March 3, 2005 | 10:56 a.m.

Nevada could be in a position to gain an unlikely ally in its efforts to expand the use of renewable energy.

Officials from UK Trade & Investment, an organization run by the office of the British Consulate General, were in Las Vegas on Wednesday touting similarities between the United Kingdom and Nevada in the area renewable energy.

Alastair Newton, deputy consul-general, said that Nevada's renewable energy mandate is quite similar to a mandate in the UK. The Nevada Legislature in 2001 passed a Renewable Energy Portfolio Standard that requires the state's largest electric utilities -- including Las Vegas-based Nevada Power Co. -- to use an increasing percentage of renewable energy to meet customer demand, peaking at 15 percent in 2013.

In the United Kingdom, a renewable energy plan championed by Prime Minister Tony Blair mandates that the country must acquire 10.4 percent of its electricity supply from renewable sources by 2015. A goal of 20 percent by 2020 has also been proposed.

"I think its very impressive what the Nevada authority is trying to do here," said Newton, serves as director of UK Trade & Investment. "I also think there is definitely an opportunity to help both of us meet very demanding targets."

Newton, who was in Las Vegas attending the Power-Gen Renewable Energy convention, described his organization's role as that of business development, and he said that objective should create opportunity for both Nevada interests in the United Kingdom and vice versa.

Richard Burdette, Gov. Kenny Guinn's energy adviser, was scheduled to meet with Newton Wednesday afternoon.

"We have talked about global markets," Burdette said. "We need capital from these folks and we need ideas as well."

He added that the move of the Legislature to implement the portfolio standard set the process in motion and has now attracted international interest in the state.

"The Legislature put them into place and should be commended," Burdette said. "It was the right thing to do."

Since 2001, however, the state has had little success in meeting the incremental standards. In 2004, based on the inability of renewable developers to establish financing for their projects, the Public Utilities Commission waived the first phase of the standard. Developers said that the weak credit status of Nevada Power, which suffered during the 2000-01 Western energy crisis, made it impossible to get financing based on a power purchase agreement with the utility.

The state has since established a Temporary Renewable Energy Development fund that will provide additional financial assurances for developers. Tim Carlson, who is developing a wind farm near Ely, said that while progress is being made he hopes parties such as those from the United Kingdom are not discouraged by the difficult start.

"I just hope that people don't get frustrated with the non-deliverables that have hit some roadblocks to some degree," he said on his way out of the Power-Gen conference.

Carlson also said that the 2001 renewable standards have served to keep the process on track despite the pitfalls.

"The renewable standard merely begins the solution process," he said.

That said, Carlson said progress is being made and an international audience is taking notice.

"I felt a much different atmosphere (at the Power-Gen conference) and a much different interest in Nevada," he said. "It's really getting exciting."

Newton said international involvement could add to the excitement and possibly speed up the process.

"Working together we can come up with solutions much quicker than we can independently," he said.