Partnership turns Nevada sunshine into RPS credits

In the competitive industry of power marketing, renewable energy stands out for the way two apparent competitors – say, water and solar – can team up to help a potential customer – Nevada Power Company, for instance – achieve a goal like meeting the state’s renewable portfolio standard.

Water district turns solar advocate
In this collaboration, water is playing the role of host instead of power source. The Las Vegas Valley Water District has partnered with the southern Nevada utility and PowerLight Corporation to develop a series of photovoltaic stations. The $22.6 million contract is part of Nevada Power's plan to meet the 2005 RPS target of seven percent renewable energy, with five percent coming from solar.

The distributed solar array projects will provide electricity for four LVVWD reservoirs. Nevada Power, the water district’s power provider, will buy the renewable credits from the 3.1-MW development, and put any surplus generation on the grid. The solar credits, combined with geothermal purchases by the utility’s parent company, Sierra Pacific Resources, will bring Nevada Power’s mix to 7.5 percent renewable energy by the end of 2005.

"This agreement is a great example of parties working together to develop cleaner energy for Nevadans," said Roberto Denis, vice president of energy supply for Nevada Power parent company Sierra Pacific Resources.

"We're hoping that this project will really jumpstart the other renewable projects that are underway in Nevada," said LVVWD Spokesperson Bronson Mack.

Historic landmark promotes sustainability
For the first installation, LVVWD selected The Las Vegas Springs Preserve, the 180-acre site of artesian springs that contributed to the city’s development. “We chose the preserve because its mission is promote to sustainable life in the Mojave Desert through demonstration, public outreach and research,” said Mack. “Incorporating photovoltaic technology fit perfectly with that vision.”

The water district acquired the land in 1978 when it was placed on the National Register for historic places. In 1997, the LVVWD board authorized development of an education center on the historical site. The Springs Preserve will open in 2006 with museums, gardens, walking paths and restored structures that recreate the story of Las Vegas' past.

In keeping with the goals of sustainability and appropriate use, the .5-MW solar array will serve as covered parking for visitors. PowerLight will develop the distributed solar array project which will use 2,712 Sharp panels.

The Springs Preserve is the only facility that is likely to use all the electricity the PV system generates, Mack noted. “The other sites will just be basic reservoir operations,” he explained. “So there will be more potential for surplus generation.”

Bonds, fees, rebates fund project
Ambitious renewable resource development requires significant investment, Mack admitted. LVVWD issued bonds to finance the DSA project. Additional funding is coming from the hook-up fees developers must pay to get on to the distribution system. “We believe this investment and utility partnership will benefit the community as a whole,” he observed.

Nevada Power put new incentives put in place in August 2004 that have sparked solar projects, too. Business and residential customers are eligible for a $5-per-watt rebate to offset the cost of installing a system. Size requirements vary, depending on the type of facility.

Improvements in solar technology are also helping to bring down the cost of development, Mack pointed out. The important thing, he added, is that, “LVVWD does not expect to or plan to raise water rates to pay for the project.”

Score one for LVVWD customers who will continue to enjoy stable rates. Score another for Nevada Power Company for achieving its RPS goals. Las Vegas Valley Water District gets a point for promoting sustainability and cutting operation costs with self generation, while Nevada’s renewable energy industry gets a big boost. The gaming capital of the world seems to have discovered a game where everyone really can win.