Vol. 3, No. 22
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September 15, 2006
Nevada's Online State News Journal
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Renewable / Diversified Energy News
Questions Arise About Federal Loans -- Big New Buildings Need To Diversify
After spending three days in Reno touting wind and other renewable forms of energy, Carl Linvill, the energy advisor to Governor Kenny Guinn just spent two days attempting to get builders of large complexes to consider alternate forms of energy use. In particular, Linvill wants builders to consider ways of creating their own energy sources from within, particularly sources that pollute the least or not at all.
Energy used to generate heating and cooling systems can also in turn heat water for internal use. He said that systems we build in the next several years will determine the price we may be paying in the future. He specified the new laws in California dealing with coal-fired generating plants. The Golden State will no longer be able to import electricity generated from coal-fired plants in other states. The generation of electricity in California could become either more expensive, or it could create large demands for renewable energy sources such as solar, wind, and geothermal.
Linvill pointed out that combined heat and power systems within a building complex can be very efficient using either natural gas or even more so using a renewable source such as solar. He said combined sources can "capture" 70 percent to 90 percent of the energy generated on site using natural gas compared to much less using utility company provided energy.
There is some consternation in the halls of Congress following news that the Department of Energy's (DOE) release of guidelines for loan guarantees for renewable energy technology. The $2 billion in loans was to be for new energy technologies, but DOE eliminated geothermal from the mix. Nevada senators Harry Reid (D) and John Ensign (R) say DOE is not following the wishes of congress. Nevada is rich in geothermal potential and there are several geothermal plants already operating in the Silver State.
Energy department officials say that is just the point. The say geothermal energy is already a mature renewable resource and the loans are for "new and novel" programs. Reid said the Energy Policy Act of 2005 specifically lists ten categories of eligible projects. In a letter to DOE, Reid and Ensign said, "We believe that this is not an optional list from which the department may pick and choose."
One Nevada company, Ormat, headquartered in Sparks is a worldwide leader in geothermal production and the equipment needed to build geothermal plants. Ormat spokespeople were not available to make a comment on the DOE snub.
The DOE guidelines said that for companies to qualify for the loans they needed to develop technologies that either avoids or reduces air pollutants. They specifically listed projects dealing with solar, wind, hydrology, and those dealing with greenhouse gasses such as coal-fired power plants. Reid and Ensign feel that geothermal production needs to be on the list.
In the meantime LS Power of New Jersey is still attempting to participate in Public Utilities Commission (PUC) hearings concerning Sierra Pacific Resources plans to build a 1500 megawatt coal-fired power plant near Ely in White Pine County. LS Power also has plans for a similar project in Ely. The PUC's chairman, Don Soderberg has told LS Power they cannot offer testimony in the Sierra hearings. LS Power is waiting for word from District Judge Lee Gates on a temporary restraining order they filed demanding the right to participate in the Sierra Pacific Resources hearing.
The commission has upheld Soderberg's decision, but did relent and will allow LS Power to testify during hearings on a large in-state transmission line Sierra wants to build connecting Ely to Las Vegas. It would be the first time both Sierra Pacific Resources power distributing companies, Sierra Pacific Power Company that serves northern Nevada and Nevada Power that serves the south are to be connected to a single transmission line.
LS Power had already announced plans for their 1500-megawatt coal-fired plants when Sierra Pacific Resources came out with their plans. There is considerable animosity involved between the utilities, and LS Power has even gone so far as to accuse Sierra Pacific of stealing their plans. The Las Vegas court hearing was scheduled for September 12, and it isn't known when Judge Gates will announce his finding.
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