April, 2010
Jean Lasee, MAOM
Sending Mixed Messages
The last few months have been filled with many mixed messages in support of renewable
energy or a lack thereof in this state. You may remember in my last blog that SunTech
announced it will be building a new manufacturing facility in the Phoenix area. In December
of last year, PVNews, an industry newsletter published an article called “Arizona Solar
Market in Focus.” The article described …”the momentum in Arizona as it pursues its goal
of becoming a major solar powerhouse in the U.S., with a mix of manufacturing, PV and
thermal projects, and R&D located in an area with some of the highest insolation in the
world.” As I listened to a representative from SunTech announce why the company chose
the Phoenix area, he mentioned the state’s forward-thinking energy policy. That was in
January of this year.
Redefining the Renewable Mix
In February, our Legislature presented a bill to redefine what was included in the
renewable mix by adding nuclear power. As one of our local utilities, Arizona Public
Service (APS), already gets more than 25% of its electricity from the Palo Verde
nuclear plant, the state would not be required to create additional renewable energy.
The Renewable Energy Standard & Tarriff or REST (designed by the Arizona
Corporation Commission) contains rules for generating a larger portion of the
electricity sold in the state from renewable energy sources. Its goal is to have
15% of electricity sold from renewable resources by 2025; nuclear power was
not defined as renewable energy in the REST.
Outside of the legislature, there was very little support for the bill as SunTech,
SolarCity, Kyocera and APS all expressed their dismay. Lyndon Rive, CEO
of Solar City said “…(the bill) would pull the rug out from under the solar industry,
eliminate jobs and reverse the flow of investment coming into the state.” Shortly
after it was introduced, the bill was withdrawn. A lot of emotion, some quite
negative, emerged in this “resistance to change” scenario.
Government and the Market
In March, I attended a debate between representatives of the Goldwater
Institute, the Legislature, and the Corporation Commission on the role of
renewable energy policy. Again, there was confusing mixed messages about
how to support growing the renewable energy industry. Much of this discussion
was about the role of government and the market in developing the solar industry
in the state. However, one comment from a solar entrepreneur whose business
was about to be severely impacted if the above legislation had been passed
made a passionate plea for government and market forces to better collaborate.
New businesses, jobs, and tax revenue are good for the state's economy. Right?
A Renewable Future
Finally, the Arizona Renewable Future forum, held this month and organized by
Governor Brewer’s office stated that “...we all believe in renewables”
(http://www.azgovernor.gov/renewable/). She mentioned two executive orders:
1) having agencies in which she is responsible be more available to renewable
energy companies, and 2) having the Department of Commerce streamline regulatory
and tax policy that specifically targets the industry. This forum, along with the recent
passage of a legislative bill that continues tax credits and solar subsidies may make
support more even again— maybe not.
From an organizational change perspective, it is not unusual to have bumps in the road,
however, the last three months have slowed important work from getting done. Is it possible
for all stakeholders of renewable energy to work together to move forward? Yes, but not
without courage, patience, and flexibility.
Talk to you later.
Sources
http://www.azgovernor.gov/renewable/
Arizona Solar Market in Focus, PVNews, Volume 28, Number 12 (2009, December). Prometheus Institute for Sustainable Development
and Greentech Media, p. 1.
Jean
© 2010
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