Vol. 3, No. 13
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May 1, 2006
Nevada's Online State News Journal
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Feature Story:
Renewable Resources Abound In Nevada But Ignored By Sierra Pacific
Tax Credit Loss Could Amount To Millions -- Oil, Natural Gas Prices Continue Upward
by Johnny Gunn
Those that tout the tourism end of Nevada's economy love to brag on the amount of sunshine people will find when they visit the Silver State, but those responsible for distributing energy in the state have not heard the word, apparently. Solar, wind, and geothermal energy sources abound and are ignored while federal tax credits could be slowly slipping into history. State law has mandated that a certain percentage of total energy distributed in the state be renewable such as wind, solar, or geothermal. Sierra Pacific Resources, parent company to the companies that distribute energy in the state is far behind in meeting the mandate.
The state law sets 20 percent as the amount of renewable energy that must be on line by 2015, and the law reads that the goal is to be reached in increments added each year. At least two of the current crop of candidates campaigning for governor have backed the concept of renewable resources as a means of easing the economic crunch created by high oil and natural gas prices. Republican Congressman Jim Gibbons held congressional hearings at the end of April on the subject and State Senator Dina Titus has been complaining about the lack of movement in the industry.
The federal program, the Energy Policy Act of 2005 provides for federal tax credits and the policy has been extended to 2007. However there are few resource plans in the books to reach the goals necessary to be eligible for the tax credits. Many in the state, including a group known as the Nevada Renewable Energy and Energy Conservation Task Force believe that Sierra Pacific Resources can make the cut off date. Wind farms can get 1.9-percent tax credit per kilowatt-hour while businesses and homeowners can claim a 30-percent tax credit for solar power. The Nevada Bureau of Consumer Protection can provide the rules and regulations that must be followed.
In March is was announced that slightly more than 400 applications for solar energy systems were approved. About 25 homes in southern Nevada are now sporting solar panels and some 42 homes in northern Nevada feature the panels as well. There are more than 120 new solar panel installations around the state. There are strict rules that must be followed in order to be eligible for the federal tax credits and to be able to work in conjunction with an energy distributor. Sierra Pacific Resources has a program in which homeowners and businesses can sell excess power back to the company.
The Nevada Renewable Energy and Energy Conservation Task Force was created in 2001 to advise the Nevada State Office of Energy and coordinates specifically with the Attorney General's Bureau of Consumer Protection, the Public Utilities Commission, and federal programs.
There have been several big projects either announced, being built, or just completed that could be used as examples of how best to use renewable resources in Nevada. The Ormat geothermal plants in northern Nevada, particularly the one just south of Reno has been on-line for some time and the company just completed construction to expand the facility. A wind farm has been discussed for White Pine County and has been somewhat in mothballs until federal military plans concerning a "military operating area" in the skies over Ely are formalized.
Representatives from Hill Air Force Base near Ogden, Utah met with officials of Nevada's Renewable Energy Task Force recently and indicated that plans for the wind farm can continue, that the air operations would not impact the energy plant. Nevada Wind is looking to build a 200-megawatt wind farm in the mountains near Ely.
The largest renewable energy production plant in Nevada will be called Solar One to be built near Boulder City in Clark County. In fact, the solar plant will be the largest to be built in the world in the last 14-years. Built by Solargenix the plant will be a Solar Trough Power Plant and will generate 64 megawatts of power.
Liquid, not water, will be pumped through mirror lined troughs and will be super heated by the solar energy. That liquid, heated well in excess of the boiling point of water will be piped through vats of water that will be turned to steam to drive the turbines. There will be no loss of the super heated fluid the company says, and cooling ponds will reclaim most of the steam used. The entire process is "green" according to company sources. See http://wwwlsolargenix.com for all the details.
The company cites reports from the DOE and The National Laboratories that says "the parabolic trough technology utilized in this plant represents one of the major renewable energy success stories of the past two decades." The company believes the technology can compete with fossil fuels for energy production. There are thousands of acres of area in Nevada that has been deemed suitable for solar generation of energy using the trough method. Currently less than three-percent of Nevada's power is generated from renewable resources.
As more and more price increases come before the Public Utilities Commission it is obvious to many that those responsible for bringing Nevada into compliance with its own rules and laws are not doing so. Sun is abundant and free, wind sources are abundant and free, and geothermal activity is spread throughout the state. Nevada should be the leader of the country in renewable resource energy production.
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