The Nation is Grappling with Many Pressing Energy Issues.
In response, renewable energy - or green power - is receiving increased attention as one possible solution to those complicated issues. The use of power sources such as solar, geothermal, wind, biomass and other fuels have the potential to reduce the nation's dependence on fossil fuels and provide some price stability for customers amid the volatile cost of commodities like natural gas.
Renewable energy, however, is not a new phenomenon for NV Energy. NV Energy in signed its first contracts for geothermal power in 1983. By 1985 NV energy and its customers were receiving electricity from geothermal power plants, and the company-wide commitment to renewable energy continues to grow.
Currently, NV Energy gets a portion of their power from 27 renewable energy sources. Those plants operate using geothermal, solar, hydro and biofuel resources.
The State of Nevada has taken a leadership role in the nation's effort to reduce its reliance on fossil fuels and foreign oil. State law mandates that a significant portion of the energy we sell to our customers comes from renewable sources. In its most recent Integrated Resource Plan filed with - and approved by - the Public Utilities Commission of Nevada,NV Energy will spend approximately $2 billion to purchase and invest in new renewable energy by 2015.
Progress is being made. Nevada Solar One, a 64-megawatt, solar-thermal plant built by Acciona Solar Power, is now operating in the Eldorado Valley near Boulder City, Nevada. The solar plant is the largest to be built over the past 16 years. While utility customers will benefit from a diversified power portfolio, Nevada's reputation as a renewable energy focal point will continue to grow.
Nevada is the No. 1 state in the nation in solar watts per capita and solar as a percentage of retail sales.
The ranking incorporates two major solar projects expected to go online in 2007: Nevada Solar One and the 10-megawatt SolarStar project being built at Nellis Air Force Base, the largest solar-photovoltaic project in the country.
Nevada Solar One's solar panel farm and close-up details of the installation.
Renewable Portfolio Standard
In 1997, Nevada lawmakers first moved to require the state's largest electric utilities to acquire power from renewable resources. At that point the goal was for 1 percent of the energy they sell to customers to come from sources such as solar, geothermal or wind power by 2010.
In 2001 the state toughened the standard significantly, making the requirement 15 percent by 2013, and in 2005 lawmakers raised the bar again, requiring 20 percent by 2015. The Renewable Portfolio Standard has been fully supported by NV Energy as a responsible move for in this growing state.
The requirement is particularly appropriate in Nevada, a state which has abundant geothermal, solar and wind resources. We understand that the portfolio standard is more than just the law, it's the right thing to do for our customers environmentally and economically.
Renewable Energy Program
A key goal of this company is the development of the right energy supply.
This attention to energy supply hinges on balancing many factors, including the cost to customers, supply reliability, fuel and power market volatility, and environmental acceptability. Renewable energy will be an important part of the optimum power portfolio.
The effort to increase the use of renewable energy is being led by a talented group of professionals in Sierra Pacific Resources' Renewable Energy Program. With a growing staff dedicated to moving renewable development forward and a substantial financial commitment, Nevada is poised to realize its potential.
Transmission
NV Energy's commitment to renewable energy is shaping everything we do.
This fact is most visible in the development of a 250-mile transmission line that will, for the first time, link the northern Nevada and southern Nevada territories of NV Energy. The transmission link will allow the utilities to add new renewable resources, further diversifying our company's power portfolio. A number of Nevada's proposed wind power projects are located in the state's northeastern mountains near Ely. The new transmission line will include the capacity necessary to carry that wind power to customers throughout Nevada.
Additionally, the connection of north and south will allow for the movement of solar power developed in southern Nevada to northern Nevada. Northern Nevada's abundant geothermal power will also be sent south on the new line.
Given the volatility that characterizes the energy industry today, NV Energy is taking reasonable and responsible steps to fulfill the goal of providing our customers with reliable power and stable rates.
The transmission line is being developed in conjunction with the Ely Energy Center.
Integrated Resource Plan
In a current Integrated Resource Plan, NV Energy outlines a three-pronged strategy to incorporate new renewable energy sources into the power portfolio:
- The company is committed to improving the process of negotiating and executing long-term renewable energy contracts.
- The utility has committed new financial and organizational resources - the Renewable Energy Program - to invest in the development of company-owned facilities and to establish equity arrangements and partnerships with reliable, renewable developers. The active role on the part of the company - in additional to the vital presence of outside developers - is seen as absolutely necessary in order to assure that sufficient quantities of renewable power are added in a timely manner.
- A 250-mile transmission line connecting our northern and southern operating territories will allow for new renewable sources - particularly wind and geothermal power projects proposed in northern Nevada - to be developed, maximizing the state's available alternative energy resources.
The company's plan relies on the active participation of independent renewable developers, responsible company-driven projects, regulatory support and traditional, long-term power purchase agreements. The end result of these activities will be a diverse power portfolio that benefits consumers through reliable power and stable rates while protecting the environment that we all enjoy.
Awards
Sierra Pacific Resources Chairman and CEO Walter Higgins received a 2006 Solar Champions Award from the Solar Energy Industries Association (SEIA) and PV Now. The awards honor "visionary renewable energy leaders" in California and Nevada.
Other Nevada leaders receiving 2006 Solar Champions Awards were Nevada Governor Kenny Guinn, Public Utilities Commission of Nevada (PUCN) Chairman Donald Soderberg, Nevada Assemblywoman Barbara Buckley, PUCN Commissioner Rebecca Wagner, Las Vegas Valley Water District General Manager Patricia Mulroy and Nevada Senate Chairman Randolph Townsend.
The awards highlighted the enactment of a comprehensive Renewable Portfolio Standard, the enactment of legislation monetizing the benefit of on-site solar systems, the development of the first utility-scale Concentrating Solar Plant since 1990, development of the largest customer-owned solar photovoltaic project in the United States, and the enactment of legislation extending the Renewable Portfolio Standard to 20 percent by 2015.