Post by jeffolie on Sept 21, 2012 12:54:20 GMT -6
Solar sucker punches homeowners, outrageous profits guaranteed
I often complained that BIG SOLAR would result in the utilities, investors profiting big time.
I often advocated SMALL SOLAR as homeowners escape from the coming electricity escalating expenses. I contracted and had installed my solar electric system for our home 2 years ago and do not pay monthly electricity bills ... I escaped using SMALL SOLAR.
The govt's defense essentially is that everybody else does it so why not solar:
".... The lure of out sized profits has set off a solar frenzy in California, ... the state's renewable energy strategy could boost electricity rates 10% to 20%, depending on a number of factors. Potentially, consumers' bills could go up by 50%. ... "It is easily in the billions of dollars ... Confidential agreements between solar developers and utilities lock in power prices two to four times the cost of conventional electricity. The power generated by the mega-plants will be among the most expensive renewable energy in the country... Government and solar officials say the subsidies are no different from long-standing federal support for the oil, gas and nuclear industries. Powers estimated the cost of new transmission lines to reach remote solar and wind power plants could exceed $15 billion statewide in the next decade. Upgrading existing transmission lines would add billions more,..."
" ... Government and solar officials say the subsidies are no different from long-standing federal support for the oil, gas and nuclear industries. They say generous incentives are necessary to incubate the fledgling renewables industry.
my jeffolie actions speak louder than words such as all these subsides for everyone should be eliminated creating a level playing field.
===========================
September 20, 2012
Driven by the Obama administration's vision of clean power and energy independence, the rush to build large-scale solar plants across the Southwest has created an investors' dream in the desert.
Taxpayers have poured tens of billions of dollars into solar projects — some of which will have all their construction and development costs financed by the government by the time they start producing power.
Banks, insurers and utility companies have jumped in, taking advantage of complex state and federal tax incentives to reap out sized returns. Among the solar prospectors in the Mojave are investor Warren Buffett's Berkshire Hathaway Inc., General Electric, JPMorgan Chase & Co., Morgan Stanley and technology giant Google Inc.
The cost for decades to come will also be borne by ratepayers. Confidential agreements between solar developers and utilities lock in power prices two to four times the cost of conventional electricity. The power generated by the mega-plants will be among the most expensive renewable energy in the country.
That high-priced power will compose an increasing share of California's electricity following Gov. Jerry Brown's signing last year of legislation requiring that renewable sources provide 33% of the state's power by 2020.
Stanford University economist Frank Wolak, an expert in the California electricity market, said the state's renewable energy strategy could boost electricity rates 10% to 20%, depending on a number of factors. Potentially, consumers' bills could go up by 50%.
"It is easily in the billions of dollars," he said.
Government and solar officials say the subsidies are no different from long-standing federal support for the oil, gas and nuclear industries. They say generous incentives are necessary to incubate the fledgling renewables industry.
more ....
" .... The lure of out sized profits has set off a solar frenzy in California, with dozens of projects planned from Barstow to Blythe, from Inyo County's high desert to the Sand Hills in Imperial County.
" ... solar developers to reap annual returns on their investments of 8% to 12%, as much as tripling their money in a decade. In some cases the returns could go as high as 17%, ... Banks and Wall Street are trying to outdo one another with green commitments," said Michel Di Capua, a renewable power analyst with Bloomberg New Energy Finance. "It looks good from an environmental perspective. But it is also very profitable."
" ... the government created a mix of federal loan guarantees, grants and tax incentives — and threw in the cheap use of millions of acres of public land for power plants...Taken together, the incentives can provide solar companies with more than half a project's costs in cash, with the remainder covered by the federally guaranteed loans.
"... The most complex piece is a tax policy that allowed companies to deduct in one year the entire cost of a project from their taxable income. The program was changed this year, requiring the cost be deducted over five years.
The low-interest, government-guaranteed loans — more than $16 billion for renewable energy projects so far — pay up to 80% of a project's construction costs.
"If this were a modern-day fairy tale — and in many respects it is — solar developers would be saying, 'Mirror, mirror on the ground, look at all the money I found!' "
"... The California Public Utilities Commission, which approves all rate agreements, won't disclose the rate for Ivanpah or any solar plant because it is considered a trade secret.
But outside experts, including Wolak, the Stanford economist, estimate that Ivanpah power is priced at $90 to $130 per megawatt hour — three to four times the cost of electricity in the state last year.
BrightSource declined to specify the price but said it was in line with the PUC's recommended renewable rate of $129 per megawatt hour.
The PUC has approved virtually every long-term contract for renewable energy that has come before it, driven in part by the state's renewable energy goals. The commission has green lighted all but two of 184 green-energy proposals since 2002, including a plan by Pacific Gas & Electric to buy solar power generated in outer space.
The state Division of Ratepayer Advocates, whose purpose is to represent consumers, concluded in a report last year that the power contracts the PUC has been approving have put consumers on the hook for $6 billion in excess costs.
"What the commission's practice has been is not to consider the cost of renewable power but to approve every renewable project that came before them," said Joe Como, acting director of the division. "We really spent too much money. It's frustrating as hell."
"... The state allows big power companies to bill ratepayers for every dollar they plow into building transmission lines, at a guaranteed annual rate of 11% for 40 years.
Powers estimated the cost of new transmission lines to reach remote solar and wind power plants could exceed $15 billion statewide in the next decade. Upgrading existing transmission lines would add billions more, he said.
The transmission upgrades and new lines for the Ivanpah project carry a price tag of $400 million.
"The utilities are thinking, 'How could we morph this thing into a … infrastructure boondoggle for our company?' " Powers said. "This is the answer — remote solar projects."
www.latimes.com/news/local/la-me-bigsolar-20120921,0,4991127,full.story
I often complained that BIG SOLAR would result in the utilities, investors profiting big time.
I often advocated SMALL SOLAR as homeowners escape from the coming electricity escalating expenses. I contracted and had installed my solar electric system for our home 2 years ago and do not pay monthly electricity bills ... I escaped using SMALL SOLAR.
The govt's defense essentially is that everybody else does it so why not solar:
".... The lure of out sized profits has set off a solar frenzy in California, ... the state's renewable energy strategy could boost electricity rates 10% to 20%, depending on a number of factors. Potentially, consumers' bills could go up by 50%. ... "It is easily in the billions of dollars ... Confidential agreements between solar developers and utilities lock in power prices two to four times the cost of conventional electricity. The power generated by the mega-plants will be among the most expensive renewable energy in the country... Government and solar officials say the subsidies are no different from long-standing federal support for the oil, gas and nuclear industries. Powers estimated the cost of new transmission lines to reach remote solar and wind power plants could exceed $15 billion statewide in the next decade. Upgrading existing transmission lines would add billions more,..."
" ... Government and solar officials say the subsidies are no different from long-standing federal support for the oil, gas and nuclear industries. They say generous incentives are necessary to incubate the fledgling renewables industry.
my jeffolie actions speak louder than words such as all these subsides for everyone should be eliminated creating a level playing field.
===========================
September 20, 2012
Driven by the Obama administration's vision of clean power and energy independence, the rush to build large-scale solar plants across the Southwest has created an investors' dream in the desert.
Taxpayers have poured tens of billions of dollars into solar projects — some of which will have all their construction and development costs financed by the government by the time they start producing power.
Banks, insurers and utility companies have jumped in, taking advantage of complex state and federal tax incentives to reap out sized returns. Among the solar prospectors in the Mojave are investor Warren Buffett's Berkshire Hathaway Inc., General Electric, JPMorgan Chase & Co., Morgan Stanley and technology giant Google Inc.
The cost for decades to come will also be borne by ratepayers. Confidential agreements between solar developers and utilities lock in power prices two to four times the cost of conventional electricity. The power generated by the mega-plants will be among the most expensive renewable energy in the country.
That high-priced power will compose an increasing share of California's electricity following Gov. Jerry Brown's signing last year of legislation requiring that renewable sources provide 33% of the state's power by 2020.
Stanford University economist Frank Wolak, an expert in the California electricity market, said the state's renewable energy strategy could boost electricity rates 10% to 20%, depending on a number of factors. Potentially, consumers' bills could go up by 50%.
"It is easily in the billions of dollars," he said.
Government and solar officials say the subsidies are no different from long-standing federal support for the oil, gas and nuclear industries. They say generous incentives are necessary to incubate the fledgling renewables industry.
more ....
" .... The lure of out sized profits has set off a solar frenzy in California, with dozens of projects planned from Barstow to Blythe, from Inyo County's high desert to the Sand Hills in Imperial County.
" ... solar developers to reap annual returns on their investments of 8% to 12%, as much as tripling their money in a decade. In some cases the returns could go as high as 17%, ... Banks and Wall Street are trying to outdo one another with green commitments," said Michel Di Capua, a renewable power analyst with Bloomberg New Energy Finance. "It looks good from an environmental perspective. But it is also very profitable."
" ... the government created a mix of federal loan guarantees, grants and tax incentives — and threw in the cheap use of millions of acres of public land for power plants...Taken together, the incentives can provide solar companies with more than half a project's costs in cash, with the remainder covered by the federally guaranteed loans.
"... The most complex piece is a tax policy that allowed companies to deduct in one year the entire cost of a project from their taxable income. The program was changed this year, requiring the cost be deducted over five years.
The low-interest, government-guaranteed loans — more than $16 billion for renewable energy projects so far — pay up to 80% of a project's construction costs.
"If this were a modern-day fairy tale — and in many respects it is — solar developers would be saying, 'Mirror, mirror on the ground, look at all the money I found!' "
"... The California Public Utilities Commission, which approves all rate agreements, won't disclose the rate for Ivanpah or any solar plant because it is considered a trade secret.
But outside experts, including Wolak, the Stanford economist, estimate that Ivanpah power is priced at $90 to $130 per megawatt hour — three to four times the cost of electricity in the state last year.
BrightSource declined to specify the price but said it was in line with the PUC's recommended renewable rate of $129 per megawatt hour.
The PUC has approved virtually every long-term contract for renewable energy that has come before it, driven in part by the state's renewable energy goals. The commission has green lighted all but two of 184 green-energy proposals since 2002, including a plan by Pacific Gas & Electric to buy solar power generated in outer space.
The state Division of Ratepayer Advocates, whose purpose is to represent consumers, concluded in a report last year that the power contracts the PUC has been approving have put consumers on the hook for $6 billion in excess costs.
"What the commission's practice has been is not to consider the cost of renewable power but to approve every renewable project that came before them," said Joe Como, acting director of the division. "We really spent too much money. It's frustrating as hell."
"... The state allows big power companies to bill ratepayers for every dollar they plow into building transmission lines, at a guaranteed annual rate of 11% for 40 years.
Powers estimated the cost of new transmission lines to reach remote solar and wind power plants could exceed $15 billion statewide in the next decade. Upgrading existing transmission lines would add billions more, he said.
The transmission upgrades and new lines for the Ivanpah project carry a price tag of $400 million.
"The utilities are thinking, 'How could we morph this thing into a … infrastructure boondoggle for our company?' " Powers said. "This is the answer — remote solar projects."
www.latimes.com/news/local/la-me-bigsolar-20120921,0,4991127,full.story