Arizona forces utilities to consider environmental costs

Arizona, with its abundant sunshine and warm climate, is a prime candidate for solar power. Yet the state currently gets less than one percent of its energy from solar power.

As of Oct. 20, 2010, a new rule enacted by the Arizona Corporate Commission (ACC) could change all that by leveling the playing ground for renewable technologies.

Under the new rule, utility companies are required to consider all environmental costs associated with fuel resources, including water. To date, water has not been taken into account in the power station approval process. Utilities will now have to quantify the use of resources such as water, which should promote and encourage the development of clean and renewable technologies in Arizona.

One company that stands to benefit is EnviroMission Limited. The U.S. subsidiary of Australian-based EnviroMission has filed two Solar Tower proposals in the state, which are waterless and fit the standards of the new ACC rule. This new development is expected to benefit the Solar Tower proposals and push the projects through.

"Arizona's new rules will favorably benefit EnviroMission's Solar Tower 'pipeline development' plans and prospects in Arizona because the environmental benefits of clean waterless solar powered electricity will be advantaged for meeting the States IRP rules,” said EnviroMission CEO Roger Davey. “Arizona's push to create a level playing field in energy utility planning will support solar entrants, including EnviroMission.”

According to Chris Davey, president of EnviroMission, 40 percent of Arizona’s freshwater is used for power production.

Currently, Arizona gets 49 percent of its electricity from coal, 29 percent from natural gas, 17 percent from nuclear and 5 percent from hydro. Development has been favored for these projects in the past, regardless of the environmental risks or use of natural resources, because they utilize previously commercialized technologies.

In an area with nearly unmatched sunshine and potential, solar power is in the minority, because it hasn’t been seen as economically viable.

“The new rule plays into our wheelhouse, certainly,” said Davey. “We can deliver more power without using any water, and that’s what it’s going to come down to—what technology can do the right thing long term.”

Image courtesy of New Papyrus Magazine.