Utility-Scale Solar Power Plant Planned for McCain’s State Needs Solar Tax Credits to Survive

A ‘power tower’ type of CSP plant
near Seville, Spain; photo credit: Abengoa

Arizona Public Service Co. (APS) has announced plans for one of the world’s largest solar facilities – a 280-megawatt (MW) concentrating solar power (CSP) plant – to be built 70 miles southwest of Phoenix, near Gila Bend, AZ.

The project is enthusiastically supported by Arizona Governor Janet Napolitano. However, its viability is dependent on the long-term extension of investment tax credits for solar facilities, which have gone down to defeat twice since December in the U.S. Congress. On both occasions, ironically enough, Arizona senator and presidential candidate John McCain was absent for the crucial vote.

The Solana Generating Station will produce enough energy to serve 70,000 APS customers when operating at full capacity. The plant will be built by the U.S. arm of the Spanish company Abengoa Solar Inc., and is scheduled to provide renewable energy beginning in 2011. Spanish for “sunny place,” Solana will not emit greenhouse gases and will provide APS with more solar electricity per customer than any utility in the U.S. If in operation today, the facility would be the largest solar power plant in the world.

“APS is committed to making Arizona the solar capital of the world and bringing affordable renewable energy to all our customers,” said APS President Don Brandt. “The Arizona Corporation Commission (ACC) has challenged Arizona utilities to be leaders in renewable energy, and we are responding aggressively.”

Governor Napolitano praised APS today at an event announcing plans for the project. “This is a major milestone for Arizona in our efforts to increase the amount of renewable energy available in the United States,” the Governor said. “Arizona is leading the way in protecting our world for future generations through combating climate change, fighting for air quality and much more. This plant will offer Arizonans a clean and efficient source of energy.”

The project is a result of a competitive RFP issued by APS that was not limited to any one technology. Although APS received a number of bids, including some from U.S. firms, none could match the Spanish company’s extensive experience in constructing, owning and operating solar power plants. Abengoa Solar deploys CSP technologies across the world, including large-scale facilities under construction or development in the U.S., Spain, Algeria and Morocco.

Solana will employ proven, state-of-the-art technology that can both produce and store energy during the day, and then provide that energy for use by APS customers across periods of peak demand. Pending approval from the Arizona Corporation Commission, APS will purchase 100 percent of the plant’s energy output under a 30-year power purchase agreement worth about $4 billion.

The Solana CSP plant will use arrays of parabolic mirrors to track the sun and focus solar energy on a heat transfer fluid – in this case, molten salt. Once heated, the liquid converts water into steam, which turns the plant’s turbines to create electricity. This technology allows the plant to produce more energy for customers than a traditional solar power plant which only produces electricity when exposed to direct sunlight.

If built, the new solar plant and other renewable energy facilities will help APS meet the 15%-by-2025 Renewable Electricity Standard set by the ACC in November 2006. However, all those who’ve worked hard to make this landmark project a reality, from the forward-looking APS planners to the governor of the state, will be acutely disappointed if senators like their own John McCain cannot switch their votes next month when solar tax credits come up for a Senate vote. Because if they don’t, the money simply won’t be forthcoming to turn sunshine into volts in the Arizona desert.