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Editorial: PG&E deal brings good news on solar

Published: Monday, Aug. 18, 2008 - 12:00 am | Page 16A

Can solar power prove itself to be a cost-effective source of electricity?

The prospects grew brighter last Thursday when Pacific Gas and Electric announced two contracts that will lead to the nation's first large-scale photovoltaic plants.

One of the deals, with OptiSolar, would generate 550 megawatts from a 9.5-square-mile solar farm that the company plans to build in San Luis Obispo County. The other would involve 250 megawatts from SunPower Corp. on another 3.5-square-mile chunk of San Luis Obispo land.

Together, these plants would generate enough clean electricity to power 239,000 homes. PG&E and the other companies aren't disclosing the rates the utility would pay. But PG&E says the deals would not affect rates its Northern California customers pay. The PG&E deal is significant on several fronts:

• It's good news for Sacramento. OptiSolar recently announced plans for a factory at McClellan Park that will employ 50 people. Anything that helps OptiSolar also helps its plans to expand to 500 employees here.

• It suggests that producing photovoltaic energy – silicon-type panels that convert sunlight directly into electricity – is coming down in price. Utilities purchasing solar on a large scale have generally gone with solar thermal technology, in which liquid is heated and then used to power a turbine.

• It will greatly increase PG&E's portfolio of renewable power. Utilities are under a state mandate to get 20 percent of their energy from renewables by 2010. PG&E says the new deals will get the utility to 24 percent by 2013, up from 11.4 percent in 2007.

California's laws, including its renewable standard and its 2006 law to reduce greenhouse gases, deserve credit for the ongoing push toward cleaner energy sources.

But it's too soon to celebrate. Congress needs to reauthorize several tax credits for renewable energy for PG&E's deals to pencil out. The sooner Congress extends these credits, the sooner Californians can be powering more homes with the rays of the sun.


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