Hamm: Solar Industry and Utilities Don’t Speak the Same Language…Yet

To kick off SPI, I sat down with the Solar Electric Power Association’s Julia Hamm at Solar Central on the SPI tradeshow floor for a quick interview (watch the full video interview below). I wanted to hear mostly about how utilities are continuing to evolve their business plans to incorporate more solar.

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“It’s not going to be a fast process,” said Hamm.  She said that there is a lot of discussion taking place behind closed doors and in one-on-one conversations with industry stakeholders but so far those conversations are just talk.  Industry experts point out repeatedly that the solar industry, which is wrought with innovators, entrepreneurs, and bootstrap-type companies is almost fundamentally at odds with the utility industry, which is a highly regulated, 100-year old industry that is inherently risk-adverse.  “They are two very different parts of the energy spectrum,” said Hamm.

But despite these differences, solar is quickly becoming utilities’ fastest growing electricity source. In all, there were some 62,000 PV systems connected to the grid in 2011, a 38% increase over 2010.  With costs coming down and technology improvements increasing the efficiency of systems and the rate at which installations are happening, there is no doubt that in the near future utilities will see solar as THE fastest growing energy source in their portfolios.

Hamm also mentioned that in many cases, solar PV is competitive with other forms of electricity.  In addition, it is an excellent way for utilities to mitigate the risk of future price increases of other fuels.  She pointed out that San Antonio-based CPS Energy, the largest municipal gas and electric utility in the country, is adding 400 MW of large-scale solar capacity to its territory, largely for risk mitigation.  On Tuesday, SEPA awarded Doyle Beneby, CPS Energy’s CEO with its Utility CEO of the Year Award for all of the great strides it has made incorporating solar onto its grid. “By taking a long term look at the value solar adds to a utility’s portfolio, you can very easily justify the cost,” she said.

As for distributed generation, utilities will have to adapt.  Hamm pointed out that it isn’t just PV that’s causing a disruption.  Storage, the smart grid, electric vehicles, micro-grids and other technologies are giving customers more control over their own energy use.  Some experts at SPI believe that utility solar business models won’t evolve until customers start to demand it.

“Solar can be a great solution for utilities but you [solar companies] have to understand what are the problems utilities are trying to solve and how solar can be a solution to [them], she said. 

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Jennifer Runyon
Jennifer Runyon has been studying and reporting about the world's transition to clean energy since 2007. As editor of the world's largest renewable energy publication, Renewable Energy World, she observed, interviewed experts about, and reported on major clean energy milestones including Germany's explosive growth of solar PV, the formation and development of the U.S. onshore wind industry, the U.K. offshore wind boom, China's solar manufacturing dominance, the rise of energy storage, the changing landscape for utilities and grid operators and much, much, more. You can reach her at Jennifer.Runyon@ClarionEvents.com Today, in addition to managing content on Renewable Energy World and POWERGRID International, she also serves as the conference advisory committee chair for DISTRIBUTECH, a globally recognized conference and expo for the transmission and distribution industry. In her role, she works in close cooperation with a large team of committed industry executives to shape the educational content for the event. She also helps assemble the renewable energy content for POWERGEN and helped launch the first Grid-Scale Storage Summit, a co-located event at HYDROVISION International. She has traveled to Germany to see onshore and offshore wind installations; Iceland to see geothermal energy in action; and France to see cutting-edge smart grids. In the U.S. she has visited and reported about bioenergy power plants in Florida, both large-scale and small-scale hydropower; and multiple wind farms, solar PV, and CSP installations. Formerly, she was the managing editor of Innovate Forum, an online publication that focused on innovation in manufacturing. Prior to that she was the managing editor at Desktop Engineering magazine. In 2008, she won an "Eddy Award" for her editing work on an article about solar trees in Vienna. In 2010, RenewableEnergyWorld.com was awarded an American Business Media Neal Award for its eNewsletters, which were created under her direction. She holds a Master's Degree in English Education from Boston University and a BA in English from the University of Virginia.

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