Energy and capacity values of geothermal exceeding solar PV value in California
In a rather interesting opinion piece, Paul Thomsen, Executive Director for Government and Regulatory Affairs at Ormat Technologies shows how the combined energy and capacity values of geothermal energy significantly exceeded the value of solar PV resources in California in 2017.
In an opinion piece in publication California Current, Paul Thomsen, Executive Director, Government and Regulatory Affairs at Ormat Technologies, writes that in 2017 for the first time “the combined energy and capacity values of geothermal energy significantly exceeded the value of solar photovoltaic resources in California.
In the first quarter of 2017, geothermal’s wholesale energy value in Southern California was $13.50/MWh greater than solar PV. At the same time, utility estimates of marginal solar PV capacity ratings for the 2018 Resource Adequacy compliance period were between nearly 0 percent and 20 percent, resulting in a capacity value difference of up to $18.50/MWh between geothermal and solar PV.”
The piece makes a great case on the overall value of geothermal, stating that geothermal provides higher energy and capacity values, as it can produce outside of production time of solar PV during peak hours as documented by the California Independent System Operator.
Make sure to have a look at the full piece via the link below.
Source: California Current