Cheapest Solar Ever? Austin Energy Buys PV From SunEdison at 5 Cents per Kilowatt-Hour

[madokie]

An unprecedentedly low price for a large solar project

Texas utility Austin Energy is going to be paying 5 cents per kilowatt-hour for solar power, and it could mean lower customer rates.

City-owned Austin Energy is about to sign a 25-year PPA with Sun Edison for 150 megawatts of solar power at "just below" 5 cents per kilowatt-hour. The power will come from two West Texas solar facilities, according to reports in the Austin American-Statesman. According to reports, around 30 proposals were at prices near SunEdison’s. Austin Energy has suggested that the PV deal will slightly lower rates for customers.

This is one of the lowest, if not the lowest, reported prices for contracted solar that we have seen. Last year, First Solar (FSLR) entered a 25-year PPA in New Mexico for 50 megawatts of solar power at 5.79 cents per kilowatt-hour. That number included a significant PTC from the state. The Macho Springs project, the Austin project and most solar projects of this nature rely on the 30 percent federal Investment Tax Credit.

Austin Energy's net sub-five cent price does not include any state PTC, according to Monty Humble of energy development firm Brightman Energy LLC. He said that the utility was "to be commended" for this solicitation. Humble added, "Based on our analysis, it can be done. There's not a whole lot of profit in it, but it's not a loss leader. It's a legitimate bid."

http://www.greentechmedia.com/articles/read/Cheapest-Solar-Ever-Austin-Energy-Buys-PV-From-SunEdison-at-5-Cents-Per-Ki

[pipoman]

1. And massively increase profits for Austin Energy

Austin Energy has suggested that the PV deal will slightly lower rates for customers.

[madokie]

2. To me any decrease in CO2 output is a plus

profits is another issue we need to work on, not tie the two together. I'm afraid if we did that we'd likely not get either, control on CO2 or control over obscene profits. Right now I'm more concerned with the CO2 aspect though.

[oldhippie]

3. Austin Energy doesn't make "profits" ...

It is a municipally owned utility.

Still, this is really good news. Austin Energy is a real innovator in this area.