PSE&G plan takes solar energy public
July 31, 2009
By Andrew Maykuth
Inquirer Staff Writer
For millions of New Jersey residents, solar power is coming soon to their neighborhoods – even to the utility poles in their backyards.
In a move both bold and expensive, state regulators yesterday approved a plan for Public Service Electric & Gas Co., the state’s largest utility, to install solar panels on 200,000 utility poles in its service territory.
The project will make New Jersey the nation’s second-most solar-fueled state, according to the state Board of Public Utilities, trailing only California.
PSE&G will spend $515 million to install 80 megawatts of solar power through the end of 2013, doubling the state’s solar capacity. Half the new production will be derived from individual solar modules mounted on about a quarter of PSE&G’s 900,000 utility poles.
The other 40 megawatts of production will be generated by centralized solar arrays, including one at PSE&G’s Cox’s Corner Switching Station in Evesham Township, Burlington County.
The 80-megawatt PSE&G project amounts to a tenth of the nation’s current total grid-connected photovoltaic capacity, according to the Interstate Renewable Energy Council.
“We think it’s a good program to get solar started in the state,” said Stefanie Brand, director of the N.J. Division of Rate Counsel, the state’s consumer advocate. Her office supported PSE&G’s proposal, which she said had a “very minor impact” on rates – adding about 10 cents per month for a residential customer in the first year, a 0.13 percent increase.
But the PSE&G project still amounts to only about 4.4 percent of the ambitious goal the state has set for power generated from renewable energy sources by 2020.
Unlike most solar projects, which supply individual customers with electricity, the PSE&G plan has attracted attention because its panels will feed directly into the electrical grid. PSE&G is calling the project “Solar 4 All” to drive home the point that all customers will benefit from solar, not just those who can afford to mount the heavily subsidized panels on their rooftops.
“This will give impetus for other projects to move forward,” said Jeff Tittel, director of the New Jersey Sierra Club, which also supported the plan.
The environmental group says the project reinforces its argument that clean energy can benefit the local economy.
A New Jersey company, Petra Solar Inc., of South Plainfield, will provide the utility-pole modules under a $200 million contract, its first large commercial project. The three-year-old company plans to add 100 employees, more than tripling its current workforce, said Shihab Kuran, Petra’s chief executive officer.
Ralph Izzo, chief executive of Public Service Enterprise Group Inc., the regulated utility’s parent, said the solar project would also demonstrate the effectiveness of distributed-power schemes that use electricity generated from multiple sources inside the existing distribution system, reducing the dependence on distant power generators that require expensive transmission systems.
“One of the things I think will be essential for renewables in the future is that we can demonstrate that they make economic sense being built where there are people to use the electricity,” he said.
“This fantasy that some people still subscribe to, that we can build all renewable sources of energy in these places where the wind and sun are abundant . . . is just not economically efficient.”
PSE&G said the utility expected to receive federal tax credits and income from selling state renewable-energy credits, which will reduce the cost of the project. The total cost of the panels is about $6.44 for each watt produced, expensive by conventional power standards, but less than solar projects in the past.
In Camden and in Secaucus yesterday, PSE&G work crews installed several of the utility-pole solar systems.
Individually, the panels are unimpressive: Each one measures about 21/2 by 5 feet and produces about 200 watts. The output of 200,000 panels is 40 megawatts, enough to power 40,000 homes.
Petra’s technology combines a conventional crystalline silicon photovoltaic panel with a microinverter, which converts the direct-current electricity produced by the solar panels into alternating current that is distributed on the grid.
Each unit also incorporates wireless “smart-grid” communications devices so that the utility can monitor the output remotely.
Kuran, Petra’s chief executive, said that each unit was designed to be installed and wired into the grid in less than 30 minutes.
“The reduction in costs comes from the simplicity in installation and design,” he said. The units will be assembled at Petra’s New Jersey factory and delivered, ready for installation by PSE&G crews. The hardware is about 10 percent more expensive than conventional rooftop systems, he said, but the total installed cost is about 10 percent to 20 percent less than rooftop models.
Kuran said the company would buy its photovoltaic cells from several vendors. Petra’s chief supplier is Suntech Power Holdings Co. Ltd., one of the world’s largest producers of solar panels. Suntech and Petra announced an alliance last month to produce the utility-grade systems.
Suntech is a Chinese company whose shares are traded on the New York Stock Exchange. It announced in May that it was scouting U.S. locations to open manufacturing facilities to produce solar panels, and Suntech’s promise to open domestic manufacturing facilities was a critical reason Petra agreed to the alliance, Kuran said.
If successful, the PSE&G contract is likely to generate more business for the closely held Petra.
Petra is in talks with other utilities about installing its proprietary technology, said David Lincoln, managing director of Element Partners L.L.C., a Radnor clean-technology private-equity firm that provided Petra with an initial investment of $14 million in 2007. He is on Petra’s board of directors.
“This is really a major breakthrough, getting consumer validation of the technology,” Lincoln said.
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GOVERNOR CORZINE DISCUSSES “GREEN REVOLUTION”
July 21, 2009
Says New Jersey leading the way
WASHINGTON, DC – Testifying before the Senate Committee on Environment and Public Works Committee in Washington today, Governor Jon S. Corzine told the panel the U.S. is on the verge of a “green revolution.”
“This revolution will require a new way of thinking about our energy supply, energy demand and our impacts on the global environment,” Governor Corzine said. “It will require the creation of new jobs across virtually every sector of our economy. From financial institutions that are investing in the next innovation in solar energy technology, to the construction firms that will be modernizing our aging energy infrastructure, to the scientists at Rutgers University who are developing ways to convert algae into a renewable energy fuel. Skill and ingenuity of many kinds will be needed. “
The Governor said serious challenges must met with serious solutions. If not met, these challenges will compromise the reliability of the energy supply, burden homes and businesses with spiraling energy prices and threaten the global environment.
“I am proud to say that New Jersey is at the forefront of leading this green revolution, and meeting the challenges that threaten our economic and environmental security,” added the Governor. “Through efforts such as our Energy Master Plan, the Regional Greenhouse Gas Initiative, and our efforts under our Global Warming Response Act, we have fashioned responsible, comprehensive and aggressive strategies.”
New Jersey has set aggressive targets by:
- reducing greenhouse gas emissions to 1990 levels by 2020
- reducing energy consumption 20% by 2020.
- reducing peak demand for electricity by 5,700 megawatts by 2020.
- having 30% of the state’s electricity supply come from renewable energy by 2020
New Jersey has one of the most aggressive Renewable Portfolio Standards in the country that requires electricity suppliers to purchase a specified percentage of their electricity from renewable energy each year. In addition, New Jersey participates in the Regional Greenhouse Gas Initiative, which is the first mandatory carbon cap and trade program in the nation.
Additionally, the State has set aggressive targets for both solar energy and offshore wind development. In fact, New Jersey is home to more solar energy installations than every other state in the country, except California. New Jersey also is on its way to sitting the first offshore windmills off the Atlantic Coast.
“Aggressive actions that states like New Jersey are taking are only the beginning,” the Governor said. “However, if we do not have technology innovation, we will not be able to meet the environmental challenges of the future.”
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PA Seeks $15 Million For Biofuel Goals
June 15, 2009
Vivi Gorman, GREENandSAVE.com
Governor Ed Rendell announced June 1 that the state is seeking $15 million in federal funding to expand the state’s use of biodiesel and alternative fuel vehicles by applying to the U.S. Department of Energy under the American Reinvestment and Recovery Act.
The governor explained that Pennsylvania’s Energy Independence Strategy includes an initiative mandating the production and use of renewable fuels to develop the state’s economy and reduce dependence on foreign fuels. The state initiative has set a goal to produce and use one billion gallons of domestically produced biofuels in Pennsylvania by 2017.
Under the plan, the Department of Environmental Protection will partner with the Pittsburgh Regional and the Greater Philadelphia Clean Cities programs, the National Biodiesel Board and eight other industry partners to install fueling infrastructure, retail sites, procure vehicles, promote the use of alternative fuels and educate the public. The eight industry partners included in the project are: Buckeye Partners LP, Centre Area Transportation Authority, Gulf Oil LP, Guttman Oil Co., Lower Merion School District, Lycoming County Resource Management Services, Pennsylvania Energy Co., and Sunoco Logistics Partners LP.
Governor Rendell remarked that Pennsylvania occupies one of the largest natural gas supplies in that country in the Marcellus Shale reserve. The project proposes to install 23 biofuel terminals and four retail stations throughout the state; l natural gas refueling facilities at two locations; and compressed natural gas equipment on 36 existing vehicles and purchasing 57 new natural gas vehicles for public transit agencies.
The project will allow for the displacement of 263 million gallons of petroleum-based fuel over four years, create at least 9,000 jobs, and reduce carbon dioxide emissions by 7.2 million pounds.
As reported in SNJ Business People
06/02/09
The second solicitation for financing by the State of New Jersey under the Clean Energy Manufacturing Fund began on June 1. The recently launched program was specifically designed to support companies looking to site or materially expand a Class I renewable energy or energy-efficient product manufacturing facility in New Jersey, and will enable the state to take a leadership role in the clean technology industry by promoting new green jobs and growth while addressing the goals of Governor Jon S. Corzine’s Energy Master Plan. The program is funded by the New Jersey Board of Public Utilities (BPU) and administered through the New Jersey Economic Development Authority. The solicitation period opened June 1, and is scheduled to close on July 15.
“The Clean Energy Manufacturing Fund will contribute greatly to the cost-competitiveness of renewable energy and energy efficiency in New Jersey while also supporting the creation of green collar jobs in the Garden State,” said Caren S. Franzini, chief executive officer of the EDA.
“Our continued partnership with the EDA will create jobs, ensure energy security and help achieve Governor Corzine’s mandate to reduce greenhouse gas emissions and combat global warming,” added BPU Board President Jeanne M. Fox.
Through the Clean Energy Manufacturing Fund, New Jersey clean technology manufacturers can receive funding under two separate components: project assessment and design, and project construction and operation. In total, a qualified manufacturer of Class I renewable energy or energy efficiency systems, products or technologies may be eligible to receive up to $3.3 million in grants and interest-free loans. Up to $300,000 is available as a grant to assist with the manufacturing site identification and procurement, design, and permits. Up to $3 million is available as a zero-interest, ten-year loan to support site improvements, equipment purchases, and facility construction and completion.
To take advantage of this program, a company must be a for-profit entity that is planning to manufacture eligible products in New Jersey and be entering or expanding within the manufacturing stage of commercial development. A minimum 50-percent cash match of total project costs from non-state grants, loans, or equity, is required for both program components. Preference will be given to those projects that demonstrate a greater percentage of the project being designed, manufactured, processed, assembled or made ready for commercial sale at the company’s project facility in New Jersey. Eligible technologies for funding include energy efficiency equipment and technology, Class I renewable energy and other technologies or equipment that can demonstrate their integral nature to the development of Class I renewable energy and energy efficiency technologies. Class I renewable energy is defined as electricity derived from solar energy, wind energy, wave or tidal action, geothermal energy, landfill gas, anaerobic digestion, fuel cells using renewable fuels, and, with written permission of the New Jersey Department of Environmental Protection (DEP), certain other forms of sustainable biomass.
To learn more about the Clean Energy Manufacturing Fund, call 866-534-7789 or visit www.njeda.com\CEMFApplication.