Hot Streak for Solar Power in Spain

After positioning Spain as the third-largest wind power producer after the U.S. and Germany, renewable energy companies are now racing for a foothold in the country’s fast-growing “solar thermal” market.

Government figures show Spain has close to 30 solar thermal plants under construction. Companies are seeking clearance for projects that would add 4,300 megawatts of capacity — enough to cover about two-thirds of New York City’s power demand on a spring day — representing an investment of about €17 billion (about $24.5 billion).
The boom comes with a number of caveats. While fuel costs are minimal, developing solar thermal energy plants is expensive — around €4 million per megawatt, compared with about €650,000 per megawatt for a modern natural-gas power station. The technology isn’t universally acclaimed: one criticism is that is that it requires a backup in the winter to keep the central receiver warm. Meanwhile, government incentives related to solar thermal power are expected to be curtailed.

Still, given Spain’s sunny climate, experts say solar thermal power could be key to reaching the European U-nion’s goal of having a fifth of all energy come from renewable sources by 2020.

Wall Street Journal, through Google News