Driving through the desert on U.S. 95, something gleams on the horizon south of Boulder City.
That something is the future of Nevada's clean energy industry, a 64-megawatt solar thermal power plant that will take its place as one of the largest in the nation when it opens in the spring.
The expected success of Nevada Solar One, which will feature 190,000 state-of-the-art mirrors and produce enough power for 18,000 Strip hotel rooms, is already driving a push to develop more renewable energy across the state.
North Carolina-based Solargenix Energy broke ground on the plant in February, four months after former President Bill Clinton told Nevada business leaders that the state should take the lead on researching and deploying renewable energy technology.
With abundant solar, wind and geothermal resources, Nevada is ideally suited to take the global lead in developing and exploiting renewable energy technology, Clinton said.
But plans for the Solargenix plant — and other clean energy sources — were in the works before Clinton addressed the Nevada Development Authority last year.
Don Soderberg, chairman of the Public Utilities Commission of Nevada, said work has long been underway on reviving the state's alternative energy industry.
"If you look at where we are today and where we are going to be in the next 24 to 36 months, you have to realize we were making progress then, we just didn't have the kilowatt hours in hand," he said.
Thomas Fair, a renewable energy expert for Nevada Power, which will purchase electricity from Nevada Solar One, said the project, the largest solar plant built in the world in 15 years, has already generated interest from developers from around the country.
"Success breeds success," said Fair. "We've had a lot of people talking to us about similar kinds of undertakings."
With several smaller photo voltaic solar projects and the Solargenix project about to come online, Carl Lindvill, energy advisor to Gov. Kenny Guinn, said Nevada would soon have the highest per capita solar generation of any state in the nation.
Somer Hollingsworth of the Nevada Development Authority said the economic boom Clinton predicted would be a by-product of investment in renewable energy is also on the horizon.
The authority is working to convince Canadian companies to locate research and development and manufacturing facilities here, as Canadian companies have some of the most advanced renewable energy technology in the world.
"If you're going to open up a division in the U.S., you don't want to open anywhere but Nevada," said Hollingsworth.
He said Clinton's speech gave Nevada national credibility — and the attention of renewable energy developers around the world.
Lt. Gov. Lorraine Hunt, Nevada Commission on Economic Development chairwoman, said the key to attracting renewable energy research firms begins the same way as attracting any other industry — by promoting the state's business-friendly atmosphere.
"They know we're business-friendly," said Hunt. "We have to let them know we're alternative energy-friendly, too."
Gilbert E. Cohen, senior vice president of Solargenix, said domestic production of the components used to build and operate alternative energy projects would be advantageous to developers as well.
Driving through the half-finished Nevada Solar One in a pickup truck, Cohen noted the hundreds of thousands of German mirrors that will be the first step to producing enough power for 48,000 homes in the valley.
Looping through the 350-acre solar field in the Eldorado Valley are miles of pipes purchased from American companies but made with imported steel.
And the $12 million Swedish turbine Solargenix ordered is slated to arrive any day.
Although most solar technology was originally developed in the U.S., when fossil fuel prices fell and renewable technology development dropped out of fashion in America in the '90s, innovation continued in Europe and Canada. Cohen said American developers are now looking to the E.U. to provide components that were originally developed in the U.S.
But Fair, of Nevada Power, said it might be impossible for Nevada to corner that market.
"To think that a given place will capture a significant amount of that manufacturing, it's a difficult thing to do," he said. "It would be great to see it happen —... but with a global supply chain it's hard for me to think it will."
 |
| Mario Alvarado assembles a structural frame that will support parabolic mirrors at the Nevada Solar One generating station. |
| Photo by Steve Marcus |
|
Fair said a proposed $3 billion coal-fired power plant near Ely and a 250-mile transmission line that would connect the wind and geothermal-rich north with the sun-baked south by late 2010 would also benefit the industry.
"Once that tie is in place, I think we will have no ultimate barrier for the development of renewable resources, wherever they may be in Nevada," said Fair.
Nevada Power and sister company Sierra Pacific Power Co. of Reno are required to purchase 6 percent of their electricity from renewable sources this year, a number that will rise to 20 percent by 2015. Although it missed the mark this year, the utility will exceed next year's minimum once Nevada Solar One comes online.
The utility plans to spend $2 billion developing 15 percent more renewable resources than required between now and 2015.
Nevada Power and Sierra Pacific currently have 100 megawatts of renewable energy under construction, including several geothermal projects in Northern Nevada.
It's also possible that the dramatic rise in oil prices over the last few years will prove a blessing for the renewable energy industry, as it pushed utilities to find alternatives to foreign oil.
"I don't think (even) with a decrease in gas prices you will see a decrease in the enthusiasm for alternative energy," said Nevada Development Authority's Hollingsworth. "The difference between the '80s and '90s is that the alternative energy is not being looked at as an environmental situation, but as a business situation.
"It's difficult to get American business people if you tell them it's going to cost them a lot of money and they'll never recoup it."
Although solar energy is currently much more expensive than traditional power generation methods, Cohen said he believes the public is willing to pay a bit more for green energy.
In November rate payers will see a new line item on their bills, a charge dedicated to paying for power from Nevada Solar One and other renewable projects.
"If we had continued the success (with renewables) of the '80s and '90s, we wouldn't be where we are today," Solargenix's Bailey said. "Decisions should be made on other factors than return on investment."