Emeritus Professor of Electrical Engineering Arizona State University SEC598S19 – Solar Energy Commercialization Session 01 (01/07/19): Overview Ronald Roedel Emeritus Professor of Electrical Engineering Arizona State University

Learning Outcomes (598S19) Solar Energy Commercialization A review of PV systems A primer on the operation of public utilities and their interaction with the solar energy enterprise A greater understanding of economic and public policy considerations for large scale systems

Starting thoughts Renewable Energy Clean Energy Produced by naturally replenishing fuels Solar, Wind, Hydropower, Biomass Clean Energy Zero carbon (CO2) emissions while operating Solar, Wind, Hydropower, Nuclear

Economic and public policy considerations Fong & Tippett, Project Development in the Solar Industry, 2013 Why renewable energy? Why NOT solar energy?

Why renewable energy? Fong & Tippett, 2013

Economic and public policy considerations Why clean, renewable energy? Climate change is caused by anthropogenic activities The planet is close to the tipping point, and we must stop “digging things out of the ground and burning them” for fuels and electricity With proper engineering, business plans, and energy policies in place, the world can thrive without resorting to the old energy enterprise

Economic considerations Now that oil, gasoline, and natural gas prices are at near record lows, this situation puts additional pressure on the Solar Industry. How does the Solar Industry proceed in trying to reach grid parity? Grid parity is achieved when alternative energy produces electricity at costs equal to power from the grid

Public policy considerations Utility scale solar projects require large amounts of land. Typically, 2-3 acres of land are required to produce 1 MW of solar power There are vast tracts of arid, un-occupied, non-residential, non-agricultural land that appear “ideal” for PV and CSP development. But groups that support Solar Development also value wilderness and untrammeled spaces, support the preservation of historical and cultural sites as well as threatened and endangered species This sets up internal conflicts within these advocacy groups

Recent victories for the Renewable Energy Business Renewal and extension of the Investment Tax Credit (December, 2016) The Paris Accords call for the reduction of fossil fuels, which will support the commercialization of solar energy The Bureau of Land Management recent decisions to let Solar Energy Zones move forward New utility-scale solar installations now at or below grid parity

Recent setbacks for the Renewable Energy Business (January, 2018) States eliminating Net Electrical Metering, increasing Fixed Charges, imposing Power Demand Charges The Clean Power Plan delayed as its implementation is challenged in court Changes in the political climate in Washington, DC

Recent setbacks for the Renewable Energy Business (January, 2019) DOE, EPA, DOI now led by individuals with little enthusiasm for the renewable energy enterprise The Clean Power Plan largely scrapped by Executive Orders The USA exits the Paris Climate Accords A blockbuster ITC decision (solar module tariffs) changed the economic landscape