Daily Archives: September 26, 2011

Delaware’s Very Own Solyndra
Paul Driessen, coauthored with John Nichols

Delaware’s political establishment thinks First State electricity consumers should subsidize the manufacturing of super-sized fuel cells, under the auspices of California-based Bloom Energy, to replace natural gas and coal-fired power plants in generating electricity.

The politicos want to build a factory in Newark, where rail service is available to ship Bloom’s 10-ton, 100-kilowatt, “eco-friendly” Energy Servers to presumed eager buyers across America.

Bloom claims its “revolutionary new design” and “breakthroughs in materials science” make its new solid oxide fuel cell (SOFC) technology “clean, reliable and affordable.” Governor Jack Markell, Department of Natural Resources Secretary Colin O’Mara, Department of Economic Development Secretary Alan Levin and assorted legislators insist their plan will create jobs and put Delaware at the forefront of the Green Revolution.

If that’s the case, and if Bloom had a viable business plan, investors would be clamoring to get in on the action. There would be no need to stick Delaware ratepayers with a bloomin’ tariff (“green premium”) that will add at least $600,000,000 to household and business electricity bills over the next 20 years – above what they would pay for electricity generated by combined cycle natural gas plants. There would be no need for the Economic Development Department to contribute another $16,000,000 in startup costs.

Actually, the green premium could be much higher – based on a 2016 “levelized cost” of $215 per megawatt hour for the fuel cell tariff versus $66 for combined-cycle natural gas generators. The $149 difference times 5,200,000 MWh from fuel cells is $774,800,000! (Townhall)

SolarCity latest to see U.S. loan loss post-Solyndra

Solar panel installer SolarCity said on Friday it was the second company in as many days that will not get finalization of U.S. government loan aid by a September 30 deadline.

The Department of Energy informed SolarCity of its inability to close the loan 48 hours ago, blaming increased paperwork resulting from a Congressional investigation into the DOE’s $535 million loan guarantee awarded to bankrupt solar company Solyndra, SolarCity said in a letter to the Republican lawmakers heading the probe.

The DOE loan guarantee program — under fire for missing signs that its first recipient of loan aid, Solyndra, was bleeding money before it went bankrupt — has nearly $9 billion in loans still to finalize. (Reuters)

California treasurer: Put renewable-energy tax exemption on hold

The head of a California panel that hands out sales tax exemptions to renewable-energy manufacturing companies wants to suspend the program in the wake of the Solyndra scandal.

State Treasurer Bill Lockyer said he will ask fellow members of the California Alternative Energy and Advanced Transportation Financing Authority at a meeting Tuesday to not approve any new applications for exemptions from paying California sales tax. The exemptions are aimed at encouraging the purchase of equipment used to make solar panels and other energy-saving projects. (LA Times)