Development on the 399-megawatt solar project in Panoche Valley
could be delayed, as Solargen Energy missed its payment deadline to
continue the permitting process to connect to the PG
&
amp;E landline in the area.
Development on the 399-megawatt solar project in Panoche Valley could be delayed, as Solargen Energy missed its payment deadline to continue the permitting process to connect to the PG&E landline in the area.
It is unclear to what extent it could delay the project that was expected to start operation in 2013.
To gain access to the power line through the Panoche Valley, Solargen must go through a permitting process conducted by grid operator California Independent System Operator Corp. CAISO is a nonprofit corporation that operates the majority of California’s high-voltage power grid.
“The ISO is the impartial link between power plants and the utilities that serve more than 30 million consumers,” according to the company’s website. “The ISO provides equal access to the grid for all qualified users and strategically plans for the transmission needs of this vital infrastructure.”
Solargen previously requested to connect to the 230-kV lines in CAISO’s “Cluster 2” study with a proposed operation date of Dec. 15, 2013, according to the most recent report Solargen filed as listed on the Over-the-Counter markets, or Pink Sheets. Upon completion of the first phase of the study, Solargen was expected to pay a $7.54 million letter of credit toward an estimated $165 million total cost by February 2011.
Solargen chose not to make the payment and instead intends to file for the “Cluster 3” study in March, according to the Solargen report.
Solargen Chief Executive Officer Michael Peterson could not be reached before press time, while a CAISO representative noted in an e-mail that information about the company itself is confidential.
“The outcome of the Cluster 3 studies will not be complete until July 31, 2012,” said ISO spokeswoman Stephanie McCorkle in an e-mail response. “Each cluster is a 420-day process. As expected, Solargen’s information is considered confidential. You will need to contact them regarding your question.”
Because of the missed deadline, approval of Solargen’s use of the power grid will be delayed, and the company will have to restart its permitting process at phase one. The delay will help give Solargen enough time to reach its financial obligation, according to the Solargen report.
“Participating in a subsequent study will put the interconnection financial requirements in a more logical time sequence in relation to completing the necessary permits and obtaining an off-take power purchase agreement,” according to the report.
The “Cluster 3” study report is expected to be completed in August 2012.
As of Monday, the news of the delay had yet to reach county officials, including Supervisors Margie Barrios and Anthony Botelho.
“I don’t know anything about that,” Barrios said. “I’m really not up to speed with Solargen, but I know some things have been put on hold because of some challenges.”
The project is opposed by some local environmental groups, such as Save Panoche Valley and the Santa Clara Audubon Society, which filed a lawsuit against the county and Solargen in November.
A hearing is scheduled for March 16, according to court documents.
Botelho was worried about the consequences of the delay for the county, but thought the project was still beneficial for the county.
“As long as the county does everything it needs to, I don’t see why this would change our opinion,” he said. “But it does worry me.”
Botelho said the delay would affect the tax dollars coming in and the total number of local jobs.
“The sooner they get stated, the better,” Botelho said. “Anything that slows down the tax dollar is discouraging.”
CAISO explained:
California Independent System Operator Corporation mission statement taken from the company’s website: For the benefit of our customers, we: operate the grid reliably and efficiently, provide fair and open transmission access, promote environmental stewardship, and facilitate effective markets and promote infrastructure development.
CAISO’s response on Solargen:
“In answer to your question, Cluster 2 studies opened in 2009 and Cluster 3 studies opened in 2010. We are scheduled to finish Phase 1 of Cluster 3 at the end of this month, reporting to the developers the estimated cost of interconnecting to the ISO grid. Those who stay in the process and proceed through the Phase 2 study process will post a deposit equal to 15% of the interconnection costs. The outcome of the Cluster 3 studies will not be complete until July 31, 2012. Each cluster is a 420-day process. As expected, Solargen’s information is considered confidential. You will need to contact them regarding your question.”
Source: ISO spokeswoman Stephanie McCorkle
