New Mexico Starts Planning for Solar Plant

Aug 28 - Power Engineering

New Mexico plans to develop a solar plant to help the state contribute to a regional goal set recently by the Western Governors Association of building 1,000 MW of solar power generation. A solar energy task force has been established by Gov. Bill Richardson to develop a commercial scale solar project by the end of 2004. The department has budgeted up to $190,000 to award a consulting contract to find the best combination of technology, financing and operating arrangement for a solar plant.

The study will also look at increasing state tax incentives to help make solar power more competitive with electricity from fossil- fuel plants. Solar power producers can presently receive a 1 cent/ kWh state tax incentive. The state wants a solar project capable of generating at least 50 MW. Financing could involve investment by venture capital firms, investor-owned utilities or a mix of private and state investment.

The solar plant could be built by a New Mexico utility or an out- of-state developer, or a developer could build the plant and sell the power to a utility as was the case with Public Service Company of New Mexico securing wind power from a wind farm built near Fort Sumner, N.M. by FPL Energy.

Copyright PennWell Publishing Company Aug 2004