DAILY MEMO::

Neighbor’s open door a boon to Nevada

Wednesday, Sept. 23, 2009 | 2 a.m.

Archive of Sun energy stories

Dirty detail: Solar panels need water (9-18-2009)
Latest obstacle to rural solar plants a tiny toad (9-11-2009)
Solar isn't powering local budgets (9-4-2009)
Not in my backyard, say foes of planned solar plants (8-24-2009)
The cost of building a solar powered economy (8-16-2009)
Negotiations under way for more solar energy in Eldorado Valley (8-16-2009)
Public meeting held on proposed Primm solar plant (8-13-2009)
BLM seeks comment on proposed solar plants near Primm (8-10-2009)

San Francisco Chronicle: Renewable power decisions create a tangled web (9-21-2009)
The New York Times: Schwarzenegger Says He'll Veto Renewable Portfolio Mandate (9-14-2009)

Nevada’s renewable energy industry is breathing a sigh of relief after attempts by California’s legislature to ban renewable energy imports were smacked down by Gov. Arnold Schwarzenegger.

Last week he scuttled attempts by his state’s legislature to require California utilities to acquire all or most of their renewable energy from plants in California. The Governator’s Sept. 15 executive order also, in effect, mandated that his state’s utility companies acquire 33 percent of their energy from renewable sources by 2020.

It amounted to a twofold boon for Nevada’s fledgling renewable energy industry, increasing the amount of renewable energy California utilities must pass on to customers while simultaneously opening the door for that energy to be produced in Nevada.

“Given the difficulty of building projects in California, if that state is going to meet its needs it’s going to need to get power on a regional basis,” said Geothermal Energy Association Executive Director Karl Gawell.

Renewable energy developments are cheaper and easier to get off the ground in Nevada than they are in California, renewable energy experts said. A lot of that has to do with population. Public lands are used more heavily in California than in Nevada, and Californians generally don’t like the idea of energy plants overtaking their recreation space. Land use appeals and lawsuits from hiking clubs and off-road-vehicle riders as well as nearby residents can delay projects in California for years. That’s less likely in Nevada, which has millions of acres of wide open land, Gawell said.

Nevada also has a less stringent regulatory structure. On public lands, the Bureau of Land Management’s environmental review process is usually all that’s required. And with fewer people to give input or file lawsuits, it usually takes less time. Nevada is also attractive because it has low business taxes in general and even lower taxes for renewable energy developers.

“We’ve always looked at Nevada as a great place to do business,” said Keely Wachs, spokesman for solar developer BrightSource Energy, who went on to explain that one of the reasons is “it’s close to California where there’s also great demand.”

Solar developers and insiders say they’re cautiously optimistic about how Schwarzenegger’s moves will affect them. The California Air Resources Board hasn’t indicated how it plans to implement his executive order.

But solar developers aren’t holding back on Nevada projects while they wait. Most companies planning new solar, wind and geothermal plants in the Silver State have said they plan to export at least some of the electricity they generate to the Golden State.

The BLM has received applications to develop dozens of renewable energy plants on land it administers in Nevada. All together, these plants would generate far more energy than is needed to meet Nevada’s renewables portfolio standard of 25 percent by 2025.

Gov. Jim Gibbons said through a spokesman that Schwarzenegger’s announcement came as no surprise and that he welcomes the opportunity for Nevada to export energy to neighboring states once the state reaches energy independence.

Senate Majority Leader Harry Reid’s take: “California clearly has plenty of electricity demand so with the right economic development strategy and strong public-private partnerships, we really have a great opportunity to sell affordable and clean power into that market. That means creating lots of new Nevada jobs.”

Renewable energy plants built to export energy would also generate millions of dollars in state revenue from geothermal leases on federally administered land. Half the money from land leases on geothermal plants goes directly to state coffers. New geothermal leases have generated more than $24 million for Nevada since 2007 and Congress is expecting to debate legislation this fall that would extend those revenue-sharing rules to solar and wind energy leases.

Discussion: 8 comments so far…

Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy.

By rusty57

Sept. 23, 2009

5:09 a.m.

Suggest removal

How will the politicians of california ever create all the "green jobs" they promised if they're created in Nevada?
By afveteran

Sept. 23, 2009

8:54 a.m.

Suggest removal

Great. Now all of the energy generated in Nevada will be transmitted to California and none of it used here. Nevada Energy, Inc, keeps getting their bottomline larger because of it, and my electric bill keeps getting higher than any equivalent bill in the nation.
By casinokid

Sept. 23, 2009

10:57 a.m.

Suggest removal

California didn't ban the import of electricity from boulder dam, why would someone even suggest banning imported commodities from other states,
Why? would you suggest banning it if the demand is greater then what you can already supply?
I'am glad to see that the Gov. seen that attempt as a disservice to the people of the state.
By 2zero

Sept. 23, 2009

2:45 p.m.

Suggest removal

casinokid......Nevada (PUCN) does not allow NPC/NVEnergy to import renewable power to meet the renewable portfolio standard (RPS).

The idea when the RPS was legislated (law) in Nevada was to create jobs in Nevada building & operating the renewable projects.
By Harley

Sept. 23, 2009

5:31 p.m.

Suggest removal

Attempting to sell anything to California may end up being a bust rather than a boon.

Sporting the country's lowest bond rating bundled with significant debt what can Nevada expect in return IOUs?

: )