Click on image to go to the report

The most important natural resource for generating electricity in the United States isn’t coal, natural gas, or uranium.

It’s water.

All of these fuels (and solar power, too) rely on water as a coolant, consuming massive quantities of a precious resource that is dwindling in many parts of the Southwest. Climate change means even less water in the future for the arid lands of the West — while energy consumption continues to grow.

[Water is also used in other parts of the energy cycle. For example, an average of 3 million gallons of water are used per natural gas well in the controversial "fracking" process -- the subject of the Oscar-nominated documentary, Gasland.]

According to a new study, “Every Drop Counts: Valuing the Water Used to Generate Electricity,” by Western Resource Advocates, electrical power plants in six Western states — Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming — used a staggering 129 billion gallons of water in 2005.

As the report points out, such intensive use of water “impact(s) our region’s rivers and aquifers, and tie(s) up water that could meet growing urban, agricultural, or environmental needs.”

There’s a growing awareness of the Water/Energy Nexus — at least among researchers, environmental organizations and within the power industry itself. “Every Drop Counts” is a welcome addition to the literature on one of the nation’s most pressing — and least reported — issues.

From "Every Drop Counts," Executive Summary.

The report makes an important distinction between three usually interchangeable terms: Value, cost, and price.

• Value - the amount that the user is willing to pay for it.
• Cost - the cost of delivering water for a particular use.
• Price - the amount users actually pay.

The price of water is typically far below the value, the authors note, because of subsidies and related political decisions.

The report includes a state-by-state analysis of water and energy policies for each of the six Western states. In Arizona, for example, the Arizona Corporation Commission (ACC) under the leadership of Chair Kris Mayes helped lead the Western states in factoring water into the electrical utility equation. (Mayes was recently term-limited off the ACC. Early indications from the new commissioners suggest that the ACC may forfeit many of the gains made under Mayes.)

In 2005, as part of a settlement on a rate-making case, the ACC ordered Arizona Public Service (APS) to consider the feasibility of expanding utility-scale solar generation at existing coal-fired power plants, noting the environmental benefits of potential water savings associated with solar generation.

The report also praises the state’s largest utility, APS, for its water policies. In 2009, the utility began reporting how much water was consumed by its electrical generation. The APS nuclear power plant at Palo Verde (the largest in the nation) uses only recycled water.

“Every Drop Counts” — which could also be titled “Count Every Drop” — may be a bit wonkish for the average reader. That said, the report will help Western residents make sense of their utility bills and give them the information they need to lobby for responsible, positive change.

For more on this issue, see:

Website: Circle of Blue

Reports:

Reducing Water Consumption of Concentrating Solar Power Electricity Generation (Report to Congress, DOE)

Energy Demands on Water Resources (Report to Congress, DOE)

Overview of the Water-Energy Nexus in the United States (National Conference of State Legislatures)

While the national media are focused on Arizona because of the state’s controversial immigration law, there was virtually no coverage of a momentous leap in an area President Obama himself has declared “sexy.”

I’m talking about Arizona’s adoption, Tuesday, of a toughest-in-the-nation rule on energy efficiency.

Hot hot hot

The new rules require state-regulated utilities to cut the amount of electricity they sell 22 percent by the year 2020, through a variety of measures that help customers increase energy efficiency. These include rebates for insulating homes, planting shade trees, and buying more efficient air conditioners.

“This is huge,” says Jeff Schlegel, of the Southwest Energy Efficiency Project. “It puts Arizona in a leadership position in energy efficiency across the country.”

The rules, which still need to be approved by the state attorney general’s office, will save Arizona residents $9 billion in reduced utility bills over ten years, according to a study commissioned by SWEEP.

The Arizona Corporation Commission, which regulates utilities, voted 5-0 in favor of the measure last night.

ACC chairwoman Republican Kris Mayes, who as been called “a rock star” of the solar power movement for her past work making Arizona a leader in renewable energy production, told a local reporter she considers the energy efficiency measure “the most important thing I will ever do in my life.”

Fellow commissioner Democrat Paul Newman, in an email this morning, also stressed the importance of the new rule.

“EE [energy efficiency] is absolutely the cheapest way to reduce power costs, and carbon and toxic emission,” he wrote. “It’s an ambitious goal to be sure, but one that’s achievable and will force Arizona to pull out all the stops to reduce power use.”

Those comments were echoed by what might seem to be an unlikely source: APS, Arizona’s largest utility.

“APS is supportive of the new Energy Efficiency Standard,” said Jim Wontor, manager of the utility’s energy efficiency programs, in an email. “It is aggressive and challenging, but achievable.”

In addition to saving money for costumers, the new rule ultimately benefits the utility, wrote Wontor, by “reducing the cost to APS of meeting the increasing demand for electricity in the future.”

Not all utilities agree. Tucson Electric Power, for example, has objected to the measure it called unreasonable and costly.

SWEEP’s Jeff Schlegel, dismisses those claims. He points, instead, to additional benefits of the new rules:

“This will create 12,000 jobs, mostly in construction. It benefits consumers with lower electric bills, and it’s good for the environment.”

If the program is successful, Schlegel thinks the Arizona standard will spread to other states, and beyond.

“We hope,” he said, “that Arizona’s lead will have an impact on federal policy.”

Energy Independence Day, July 3, 2010

With the economy and job-growth stagnant, oil still spewing from the BP well-head into the Gulf of Mexico as a toxic reminder of our addiction to fossil fuels, President Obama couldn’t have picked a better time to announce a major solar power initiative than today, July 3rd — only hours away from Independence Day.

The president labeled his weekly radio address “A Solar Recovery,” reflecting the emphasis on pocket-book voting in this election year. Personally, I wish Obama would have gone with “Energy Independence Day,” putting the spotlight on the larger, long-term prize. But I guess that explains why I’m a journalist and he’s The President of the United States of America.

“We’re accelerating the transition to a clean energy economy and doubling our use of renewable energy sources like wind and solar power…” the president said and then announced a new commitment to solar power of $2 billion.

Solana Solar Generating Station

The bulk of the money will be used to build the world’s largest solar power plant, a 280-MW station in southwestern Arizona. The Solana generating plant, said Obama, “will be the first large-scale solar plant in the U.S. to actually store the energy it generates for later use — even at night.”

Solana (Spanish for “sunny place”) will be built and operated by Abengoa, headquartered in Seville, Spain. The plant will use concentrating solar power (CSP) technology, which uses heat generated by sunlight to produce electricity. Most Americans are more familiar with photovoltaic (PV) solar panels used mostly on rooftops to generate electricity.

Electricity generated by Solana will be purchased by Arizona Public Service, the state’s largest utility, and used to supply electric power to an estimated 70,000 homes.

“This is very encouraging news,” Pat Dinkel, VP for power marketing and resource planning at APS, told The Sun today. “We know there are a lot of steps remaining before our customers can benefit from Solana’s generation but this action brings that goal a step closer.”

Abengoa’s Fred Morse thanked Arizona Congresswoman Gabrielle Giffords (D-Tucson), a leading solar advocate in Washington.

“Congresswoman Giffords played an instrumental role to make this project a reality,” said Morse. “She understands the importance of creating jobs in Arizona and the ripple effects that this project will create throughout the Arizona economy. Solana will bring Arizona one step closer to becoming the solar capital of the nation.”

The Solana project has been in the works for at least three years. With the federal loan guarantee, construction on the plant may begin yet this year.

Secretary Chu: U.S. leadership in the global green economy

Abound Solar's PV Panel

Secretary of Energy Steven Chu touted the second part of today’s announcement — $400 million to Abound Solar Manufacturing to produce a new form of PV cells. Plants in Longmont, Colorado, and Tipton, Indiana will manufacture Cadmium-Telluride panels, a technology developed at Colorado State University, the National Renewable Energy Laboratory (NREL) and the National Science Foundation.

The Indiana plant was originally built for a Chrysler auto parts supplier, but because of the recession, it had never been occupied. By 2013, Abound hopes to be manufacturing 840 MW worth of solar panels a year at the two plants.

“By supporting new cutting-edge solar manufacturing technologies,” said Chu, “we are advancing a diverse renewable energy portfolio while helping to position the U.S. at the forefront of the global green economy.”

Jobs for Arizona & New Mexico, too

The Solana plant will need nearly a million specially-made mirrors to reflect and concentrate the Arizona sunlight, and miles of tubing to carry the super-heated liquid used in the CSP process. A mirror factory is planned for the Phoenix area, and the tubes will come from neighboring New Mexico, where a factory owned by Schott Solar is currently operating well-below capacity.

Solana Solar Generating Station

The Solana plant will cover 3,000 acres of former farmland. While CSP that uses water for cooling is controversial, especially in the desert, the power plant will use less water than the farm that had been at the same location. According to Rep. Gabrielle Giffords office, Solana will use slightly more than 10 percent of the water drawn by the farm.

Solana generates electricity without producing greenhouse gasses — eliminating an estimated 470,000 tons of GHG a year.

Some 3,200 giant parabolic collectors will track the sun throughout the day at Solana. Each collector is 25-feet wide, 20-feet high and the length of 1.5 football fields. Some of the heat generated by the collectors will be stored as molten salt, allowing the plant to generate electricity for six hours after sunset.

• Watch the video of the President’s address
• Solana on the APS Website
• Representative Gabrielle Giffords
• Abound Solar
• Abengoa white paper on trough technology (pdf)