Xcel in Concentrated Solar Deal with Cogentrix Energy

There is an interesting article in Colorado Energy News about Xcel Energy signing a 20-year contract with Cogentrix Energy to purchase 30 megawatts of power from a concentrated solar photovoltaic plant in Colorado's San Luis Valley next year. The plant hasn't been built yet, but construction is slated to begin Q1 2011. I think that this contract probably seals the deal so to speak, and that this concentrated solar PV plant will be constructed since they now have a guaranteed buyer of power. This will also help Xcel meet a portion of the renewable energy portfolio requirements for the state of Colorado (30% renewable energy by 2020).

Although the distributed generation (DG) proponents in the San Luis Valley may not be happy with this development, I think that until someone is willing to put up the capital to place solar modules on 6,500 homes (the amount of homes this plant is estimated to provide electricity to) we will have to continue to use the centralized utility model. The price of solar PV modules is going down each day, but it is difficult for homeowners right now to come up with the will or the money to generate their own renewable power. If I could flip a switch, I would utilize a DG model, not the inefficient and outdated centralized utility model. However, right now the money to be made is in large-scale power plants (as understood by Cogentrix Energy, a subsidiary of the very large financial institution Goldman-Sachs). In other words the money making model is in a centralized power distribution model, not in solar PV modules on residential and commercial buildings.

Of course as always, I'm open to you folks challenging this position of mine.