Anywhere the Sun Shines: Developing Solar Energy on Contaminated Land Solar electricity in the United States is developing in some unexpected places. Utility scale solar energy generation has recently undergone a growth spurt in areas with low and moderate solar resource levels, particularly in New England and the Mid- Atlantic region (e.g., New Jersey, Pennsylvania and Maryland.). Most often this development occurs in states that have a renewable portfolio standard (RPS), which requires a certain portion of electricity to be generated from renewable energy sources, and especially in states that specify what portion must come from solar resources. When coupled with incentive programs targeting solar development, solar electricity generation is projected to develop rapidly over the next 20 years. Solar projects that otherwise would not be built are now viable due to state policy and local market drivers. Siting Solar Energy on Contaminated Land and Mining Sites With increased demand for electricity generated from solar resources, the search is on for viable sites across the country. The U.S. Environmental Protection Agency (EPA), Office of Solid Waste and Emergency Response (OSWER) Center for Program Analysis (OCPA) is encouraging renewable energy development on potentially contaminated land and mining sites by identifying sites with solar, wind, biomass, geothermal and landfill gas energy potential. Many contaminated sites are located in areas with excellent potential for the development of photovoltaic (PV) solar electricity generation. The viability of utility-scale solar energy at a site is typically linked to the area's solar resource, which is largely a function of latitude and weather. As such, at a national level, the southwestern United States is recognized as having excellent potential for the development of solar energy (see map). However, state policies and incentives specifically encouraging the development of a solar power industry make it a possibility anywhere, including lower solar resource areas like the Mid-Atlantic region. Figure 1: U.S. Solar Resource Availability PV Solar Installation, Bucks County, PA In EPA Region 3 (Delaware, Maryland, Pennsylvania, Virginia, Washington, D.C. and West Virginia), EPA has identified more than 5,000 sites and 1.2 million acres of potentially contaminated properties and abandoned mine sites with potential suitability for PV solar generation facilities. The National Renewable Energy Laboratory estimates that PV solar development, which is the best-suited solar technology for low solar resource areas, requires two to 12 acres of land per megawatt of installed capacity. A study of RPS legislation by Berkeley National Laboratory estimates that in the 14 states with a current RPS, installed solar capacity is expected to grow from 550 to 6,700 megawatts between 2010 and 2025, requiring thousands of acres of land. Siting renewable energy facilities, including solar facilities, on potentially contaminated land and mining sites can reduce pressure on greenfields for siting these facilities. In addition, developing solar facilities on contaminated or abandoned mine land can provide an economically viable reuse option for sites with significant cleanup costs or if local economic conditions prohibit traditional reuse of the site. These sites may also have existing transmission capacity, roads and other critical infrastructure in place, as well as industrial zoning adequate for renewable energy projects. Figure 2: Utility Scale PV Solar Generation Potential of Potentially Contaminated Lands and Mining Sites in Southeastern Pennsylvania it (Proposed) Bucks County Solar Project Philadelphia Navy Yard ------- Renewable Portfolio Standards and Solar Energy Generation Regardless of solar resource availability, no solar energy project is likely to take place if it does not make economic sense. State policies designed to spur solar energy development can drive demand for solar energy and compensate for lower solar resource availability. These policy and market drivers include: renewable portfolio standards and solar shares; electricity market conditions; consistent public support for renewable energy development; state and local incentives; and promotion of renewable energy as an engine of economic development and job creation. Renewable portfolio standards and solar shares—Solar energy development is expected to grow primarily in the 14 states that have established an RPS with a solar share. The RPS requires a portion of electricity to be generated from renewable energy sources and a solar share specifies what potion must come from solar resources. An electric power provider can achieve this by either producing a certain amount of its electricity from solar resources or by purchasing solar renewable energy certificates (RECs). A large share of the projected growth of solar energy is in states with low to moderate solar resource levels because they have RPS and solar share policies (see Figure 3). In these states, solar energy is expected to grow from an estimated 260 megawatts of installed capacity in 2010 to over 5,100 megawatts by 2025, based on the RPS and solar share policies currently in place. Electricity market conditions—Electricity pricing is based on the location of power generation relative to demand and transmission constraints. Geographic areas that have a strong demand for solar generated electricity (e.g., states with strong RPS and solar share requirements), but not much installed capacity, may find solar energy generation more profitable. The sale of these tradable RECs, which are issued for every 1,000 kilowatt-hours of solar electricity generated, creates a revenue stream that can be used to finance additional solar PV installations in those states. In addition, in areas of high transmission line congestion, electricity prices can rise, making solar energy more competitive. Consistent public support for renewable energy development- State policies must recognize that solar markets cannot fulfill future RPS mandates without clear, predictable, long-term government support. Research shows that areas with strong local and state government support, as well as strong public support, are more likely to see solar development due to a reduction in major investment risk factors such as public opposition and permitting times. Figure 3: RPS-driven Demand for Solar Electricity in Selected States, 2010 and 2025 New Hampshire District of Columbia Delaware North Carolina Pennsylvania Ohio Maryland New Jersey C T 2025 EH I 1 I I I I 500 1,000 1,500 Renewable Portfolio Standard State-level requirement that electric power providers generate or purchase a specified percentage of the power they supply or sell from renewable energy resources by a target date. Solar Share May be included in state RPS to require a portion of an electric provider's electricity come from solar resources. State and local incentives—Targeted state and local incentive programs provide a combination of low cost loans, grants or tax incentives to reduce the startup and operating costs of utility scale solar installations. Combined with federal programs such as the 30 percent Federal Investment Tax Credit, state incentives abate considerably the effective cost of installing new solar capacity. Promotion of renewable energy as economic development- Solar panels are subject to breakage when transported over long distances, so economic development policies that encourage local manufacturing can accelerate solar energy development by providing material and capital needs locally, thus bringing down capital costs. With the right mix of targeted policies, utility-scale solar generation is possible anywhere the sun shines. Solar energy generation is poised for growth across the United States and potentially contaminated land and mining sites can provide an ideal location for these facilities. For more information on EPA's RE-Powering America's Land: Renewable Energy on Contaminated Land and Mining Sites, please visit: www.epa.gov/renewableenergyland, or contact EPA at cleanenergy@epa.gov United States Environmental Protection Agency Anywhere the Sun Shines: Developing Solar Energy on Contaminated Land Solid Waste and Emergency Response (5105T) EPA-560-F-09-XXX May 2009 www. epa. gov/oswer ------- |