Built-in Obsolescence in Solar Tariffs Creates Growth

Naomi-K

4-21-2008 7:45 PM

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://www.clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/2fdacfe4-f1fd-4ece-ae70-caf8f5e200e9/9051F683-E217-4F99-B991-BE9B84669998/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.azcentral.com/arizonarepublic/viewpoints/articles/0420vip-solaroverview0420.html" href="http://www.azcentral.com/arizonarepublic/viewpoints/articles/0420vip-solaroverview0420.html" style="font-size: 11px;">www.azcentral.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.azcentral.com/arizonarepublic/viewpoints/articles/0420vip-solaroverview0420.html"><DIV> But the scene is even more unworldly: 624 giant mirrors surround the tower, focusing the sun's radiation at the very top. </DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.azcentral.com/arizonarepublic/viewpoints/articles/0420vip-solaroverview0420.html"><DIV>
The heat there reaches almost 500 degrees, making steam to run an electric turbine. The 11-megawatt system can produce enough power for 6,000 homes.  </DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.azcentral.com/arizonarepublic/viewpoints/articles/0420vip-solaroverview0420.html"><DIV>
The tower, which just completed its first year of regular operation, is part of a major solar-electric complex that Abengoa is building near Seville. </DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.azcentral.com/arizonarepublic/viewpoints/articles/0420vip-solaroverview0420.html"><DIV>
One reason for the big push into solar, Fernandez says, is long-term self-interest: "Spain has no natural energy sources." </DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.azcentral.com/arizonarepublic/viewpoints/articles/0420vip-solaroverview0420.html"><DIV>
But the real story here isn't the staggering technology.</DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.azcentral.com/arizonarepublic/viewpoints/articles/0420vip-solaroverview0420.html"><DIV>
It's the financial tool that made it possible - and one that we could adopt here. </DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.azcentral.com/arizonarepublic/viewpoints/articles/0420vip-solaroverview0420.html"><DIV>
Spain has a "feed-in tariff ": Utilities must buy a certain amount of electricity at a guaranteed price from companies that produce electricity from solar and other renewable sources. </DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.azcentral.com/arizonarepublic/viewpoints/articles/0420vip-solaroverview0420.html"><DIV>
The price is designed to cover the extra expense of renewables. But it declines over time, so the crutch is only temporary. </DIV></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/9051F683-E217-4F99-B991-BE9B84669998/blog/" title="blog or email this clip"><img src="http://content6.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

Naomi-K says:

By removing the major obstacle to solar energy - high start-up costs - solar has grown tremendously in Spain.

Phasing out this tariff gradually over time is also wise. This decreases dependence on these tariffs - which could destabilise the solar energy market

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Built-in Obsolescence in Solar Tariffs Creates Growth

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