|
|
Chance of Disastrous Drought in U.S. Southwest a Huge Opportunity For Utility-Scale Solar Firms
It probably won't be long before investors put two and two together and realize that the only way to replace so much power quickly enough (nuclear power plants would take too long to build), and in a way that was environmentally (and thus politically) acceptable, would be through utility-scale solar power plants. That should make legendary businessman Ted Turner happy. In 2007 Turner joined with New Jersey-based Dome-Tech Solar to create DT Solar, a company whose plans include developing utility-scale solar power plants in the U.S. southwest. While DT Solar is privately held, several other potential beneficiaries of what could become a rush to build utility-scale solar power plants are publicly traded. One such firm is Emcore Corp., which earlier this month signed a memorandum of understanding to supply up to 700 megawatts of solar power systems for a utility-scale solar power project in the U.S. southwest. That project will use Emcore's concentrating photovoltaic (CPV) technology, one of a number of technologies for generating utility-sized amounts of power from the sun. Last week, New Mexico-based Emcore announced plans to spin off its CPV business into a separate public company. Another possible winner is Xantrex Technology Inc. of Canada, which earlier this month said it had supplied the inverters for a utility-scale solar generating facility now online in Colorado. Still another publicly-traded outfit that might benefit is Western Wind Energy Corp., another Canadian firm, which recently set up a solar power subsidiary with the intention of building utility-scale plants in California and Arizona. Western Wind could enjoy a unique advantage. The company reportedly has been approached by a number of electric utilities in that region about building combination solar and wind generation facilities. A couple of big names from the defense industry may also benefit. Last November, Lockheed Martin Corp. announced that it and a partner plan to seek out utility-scale solar power projects in North America. Meanwhile, Boeing Co. is a leader in high efficiency concentrating solar power systems, and was recently selected by the U.S. Energy Department to receive funding for a demonstration project. A number of small private companies also are players in the utility-scale solar power game, among them California-based Amonix Inc., which has developed a low-cost concentrating system for utilities. |
 |
 |
Last week's news coverage of a scientific report warning there is a 50% chance that Lake Mead could run dry by 2021 focused on the water catastrophe that could face the U.S. West. But given that hydropower from Lake Mead, which was created when Hoover Dam was built in the 1930s, is the main source of electricity for Las Vegas, as well as a key power source for Los Angeles and Phoenix, the energy crisis that would also result might be nearly as great.