NV Energy gets OK to add 6 solar projects, shut coal plant faster
NV Energy has taken a major step in efforts to double its renewable energy by 2023 after receiving approval to add six solar projects and accelerate the retirement of its North Valmy 1 coal-powered plant.
On Friday, the Public Utilities Commission approved NV Energy’s three-year integrated resource plan. Dubbed the Low Carbon Case, the plan will lead to six new solar projects in Nevada that will deliver 1,001 megawatts of solar energy at “historically low prices,” according to documents filed with the PUC. Prices will range from $21.55 to $29.96 per megawatt-hour
“It really does come down to the money. Right now, clean energy in Nevada is cheaper than natural gas and coal,” said Elspeth DiMarzio, Beyond Coal campaign representative for the Sierra Club. “Nevada has some of the best solar resources in the nation.”
Early retirement
All six solar projects, three of which will be in Southern Nevada, are expected to be operating by the end of 2021. The plan also includes the addition of 100 megawatts worth of energy with three battery storage systems in northern Nevada.
“Earlier this year, we made a promise to our customers that we would double our renewable energy by 2023, and today’s decision puts us closer to reaching that goal,” NV Energy President Doug Cannon said in a news release.
The utility also is set to retire its North Valmy 1 coal-fired generating unit in Humboldt County by Dec. 31, 2021, four years ahead of schedule. North Valmy Unit 2 is still set to be retired by the end of 2025.
A 2016 report from the Sierra Club estimated that retiring North Valmy Units 1 and 2, the last utility-owned coal units in Nevada, and pursuing clean-energy alternatives would save ratepayers in Nevada at least $30 million.
“This is a huge step in the right direction for Nevada,” DiMarzio said. “Every dollar we spend on importing fossil fuels from out of state is a dollar we’re not spending on the Nevada economy. By stepping away from fossil fuels, we’re really investing in clean-energy jobs in our state.”
According to the U.S. Energy Information Administration, 87 percent of the energy Nevada consumed in 2016 was from out of state.
Economic benefits
The plan represents a $2.175 billion direct investment in Nevada’s economy and is expected to create 1,785 construction jobs and 76 long-term jobs.
The integrated resource plan will reduce natural gas capacity and production and all but eliminate coal-fired capacity and production within the next five years, according to documents filed with the PUC. A statement from the Sierra Club said this plan will more than double NV Energy’s total renewable generation, allowing the utility to generate 32 percent of its power through renewables by 2023, up from 14 percent in 2017.
This is good news for ratepayers, according to Tom Polikalas, the Nevada representative for the Southwest Energy Efficiency Project, a nonprofit advocate for energy efficiency.
The cost of solar is declining and doesn’t have the instability of natural gas spikes, Polikalas said, adding that the plan “is really good for all consumers for rate stability.”
According to the Energy Information Administration, costs for utility-scale solar systems have fallen about 10 to 15 percent each year between 2010 and 2016.
Solar power surge
NV Energy documents state that this plan advances Nevada’s energy policy and fits closely with its corporate business strategy. The utility has announced a long-term goal to deliver 100 percent renewable energy to customers.
According to data from the Solar Energy Industries Association, a national trade group, more than 433,000 homes in Nevada were powered by solar as of September, and 11.52 percent of the state’s electricity comes from solar power. The association put the state in eighth place among states for solar installation rates in the second quarter of 2018.
“This (integrated resource plan) is a great step toward a clean energy future for Nevada,” Polikalas said. “Now, with an additional 1,001 megawatts of storage, this really puts Nevada on the forefront as an example of clean energy being able to power a state’s economy.”
Contact Bailey Schulz at bschulz@reviewjournal.com or 702-383-0233. Follow @bailey_schulz on Twitter.
