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High Capital Costs Plague Solar (RPS mandates, cost dilution via energy mixing required) Part III

By Robert Peltier -- November 19, 2009

Solar power has one major advantage over its more ubiquitous cousin wind power: electricity that is  generated during peak demand hours (hot, sunny, air conditioned afternoons). Such makes solar attractive to utilities that value such capacity for peak shaving, cost aside.

The problem of wind is shown by this example. The Electric Reliability Council of Texas (ERCOT) leads the nation with more than 8,000 MW of installed wind capacity, yet their resource planning–tasked with keeping the lights on–“counts 8.7 percent of wind nameplate capacity as dependable capacity at peak.”

The limited usefulness of wind and solar is reflected by their low system capacity factors. For example, the capacity factor of a typical utility-scale photovoltaic (PV) or concentrating solar project (CSP) is still limited to about 25% compared to the average for U.S.