by Paul Thomsen, (GRC Member) Executive Director, Government and Regulatory Affairs, Ormat Technologies
The GRC Bulletin - Free to Download |
In the first quarter of 2017, geothermal’s wholesale energy value in southern California was $13.50/MWh greater than solar PV. At the same time, utility estimates of marginal solar PV capacity ratings for the 2018 Resource Adequacy (RA) compliance period were between nearly 0 percent and 20 percent, resulting in a capacity value difference of up to $18.50/MWh between geothermal and solar PV.
Today in California, geothermal has a combined energy and capacity value of $32/MWh higher than solar PV using very conservative assumptions. When you account for geothermal’s ancillary services and operational flexibility, combined values climb to more than $40/MWh higher than solar PV. These calculations demonstrate that geothermal can compete with solar PV on a net cost basis, even as PV costs continue to decline.
Wait…what? How can that be?
Read the rest of the article for free (Pages 34-37) in the current issue of the GRC Bulletin - the voice of the global geothermal energy community - provided by the Geothermal Resources Council (GRC).