POWER December 2010 - 34

TOP PLANTS
1. Carpeted with PV. These are just a few of the 90,000 PV panels that compose the
DeSoto Next Generation Solar Energy Center. Courtesy: FPL
ucts was carefully managed to control
their impact on both schedule and cost.
On the environmental front, the company
elected to work around wetlands, a
decision that required additional construction
management activity. It also relocated
dozens of gopher tortoises.
" Another challenge related to this project
was obtaining regulatory approval for
construction, " he said. " FPL is a regulated
utility, and because Florida does not have
a state-mandated renewable portfolio standard,
special legislation was needed before
FPL could move forward with construction
of this project. Fortunately, in July 2008,
Florida enacted legislation that encouraged
development of zero-emissions renewable
technologies. FPL took swift action, and
by December 2008 obtained the necessary
approvals to construct this project. "
Additional permit applications have been
filed for a third phase, which would consist
of an incremental 226 MW to be built at the
site for a grand total of 300 MW. Permits for
this phase are expected in 2011. This third
and final phase requires the same legislative
and regulatory approvals as the second
phase. Construction of this final phase would
follow Phase 2 and would take several years
to complete.
Financing and PV Power Costs
" The total project cost was approximately
$152 million, " Martinez said. " This facility
was funded in a way to maintain FPL's current
strong financial position. Specifically,
the facility was funded with approximately
55% equity and 45% debt. FPL raises
debt financing through the issuance of first
mortgage bonds. As a regulated utility, FPL
is allowed a return on investment up to the
rate approved by the Florida Public Service
Commission. "
The project qualified for a federal stimulus
grant through the U.S. Treasury under
Section 1603 of the American Reinvestment
and Recovery Act. Once the plant became
operational, FPL received a payment
from the federal government for approximately
$44 million.
Martinez explained how the cost of electricity
per kilowatt-hour produced by solar
energy plants compares to the cost of electricity
generated by other forms of electrical
generation.
" The cost of producing energy from
the current solar projects is about 31 cents
per kWh, but these costs are expected to
34
soon decline to about 21 cents/kWh, " he
said. " These costs compare to the costs of
producing energy from a natural gas-fired
combined-cycle unit of about 15 cents/
kWh. Although the cost to produce solar
energy is higher than traditional forms of
electric generation, it is important to remember
that the fuel in a solar project is
free over the entire life of the facility, and
the plant also does not require water and
does not produce waste. "
Project Challenges
Construction of the DeSoto solar facility
presented several challenges due to its scale
and the number of interlocking construction
tasks involved, the regulatory environment,
and environmental requirements, according
to Martinez. Because a solar project of this
magnitude had never before been attempted
anywhere in the U.S., the construction
challenges were many and varied:
■ GPS-guided earthmovers helped clear and
grade much of the 235-acre site.
■ More than 90,000 solar panels were
trucked in on a just-in-time basis.
■ Some 23,000 piers-each more than 30
feet long-had to be driven and aligned at
the proper depth to serve as the backbone
of this highly integrated system.
■ Because each movement of raw material
increased the risk of breakage,
safety incidents, and schedule and cost
impacts, multiple receipt points were established.
■
Even the number of bolt turns and how
many " touches " were made to waste prodwww.powermag.com
On
the Horizon
Martinez described the future role that he
anticipates solar energy will play in generating
electricity in the U.S. He commented
that the future impact of solar energy is
really contingent on public policy, both at
the federal and state levels. Once supportive
legislation is passed, each state will
have to determine the strength of its solar
resource and how renewable energy will
best fit into its future energy plans.
" Here in the Sunshine State, we are
fortunate to have an abundance of solar
resources, and FPL is very interested in
growing our solar portfolio, " he said. " In
fact, we have already identified potential
sites where more than an additional 500
MW of solar power could be built quickly
for an average cost of less than $1 a month
on the typical residential customer's
monthly bill for construction and operation
over the life of the projects. Once the
right legislation is in place, we could move
forward on these projects quickly, bringing
thousands of new jobs to Florida and
helping to create a clean energy economy
here in our state. "
The solar industry is growing, but the majority
of power is currently generated through
fossil fuels. At FPL, the fuel mix is primarily
natural gas and nuclear, but the utility will
have 110 MW of solar power online by the
end of 2010, according to Martinez.
" That will make Florida the No. 2 producer
of commercial-scale solar power in
the nation, and we are very interested in
building more once the right legislative
and regulatory framework is in place in
Florida, " he said. ■
-Angela Neville, JD, is senior editor
of POWER.
POWER | December 2010
http://www.powermag.com
POWER December 2010

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