AUSTIN TO BUILD BIGGEST U.S. SOLAR POWER PLANT

City council gives Austin Energy the go-ahead for major solar project
Christopher Calnan, March 5, 2009 (Austin Business Journal)

“The Austin City Council…gave the go-ahead for Gemini Solar Development Co. to build the 300-acre solar array that would generate 30-megawatts annually…federal investment tax credits or similar rebates Gemini Solar receives from the project [must] be passed through to the city and Austin Energy to reduce any related fuel cost charges passed on to the utility’s customers.

“The council also [requested]…a council-appointed task force….[to] formulate a renewable energy plan and provide input before a project is selected by Austin Energy…[and] incorporate conservation, the current financial climate, updated demand forecasts, changing technology, and state/federal stimulus programs."

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“The approval came after…the Solar Electric Manufacturers in Texas, or SEMI Texas…requested Gemini Solar to restructure its deal so U.S. companies can participate in the project, which is estimated to be worth $180 million. The coalition proposed a series of three 10-megawatt projects to give local panel makers time to get their plants operating in time to supply the project…Instead, Gemini plans to get the project’s 220,000 solar panels from a Chinese manufacturer Suntech Power Holdings.

“…The restructuring… would give [Texas] start-up companies an early boost and effectively seed fund a local solar industry…Austin Energy officials declined to comment… except to say the source of the panels isn’t a major concern compared with getting the best price…Gemini Solar [is] planning to complete the project with financial backing by [Spanish-owned] MMA Renewable Ventures…Carole Keeton Strayhorn, an Austin mayoral candidate, urged the council not to contract with Gemini Solar."

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“Although Austin is being positioned to become a hub of cleantech innovation…no Texas companies are ready to produce solar panels…Eight to 10 solar companies are considering Austin as a location for future manufacturing plants because they can use the local worker pool from the semiconductor industry…Austin-based HelioVolt Corp. …is the only local solar panel maker…but it isn’t scheduled to reach full-scale production until 2010…Several U.S. companies…are capable of producing enough panels to supply the project…

“Austin Energy would pay $250 million, $10 million a year for 25 years, for the electricity the solar array would generate…Once it’s operating, Gemini Solar would be eligible for $60 million — about one-third the project’s cost — through the federal investment tax credit program…"