What is Utility-scale Solar?

The phrase “utility-scale solar” is frequently used when referring to renewable energy sources. However, the term’s actual meaning is frequently ambiguous. This can be a result of the various definitions of the term that are offered by many sources.

Utility-scale solar often refers to large-scale projects that call for significant financial outlays, solar resources, and expansive land areas. The main factor in determining whether a project is utility-scale or not is that it is designed to provide electricity to the utility grid. The final users are subsequently supplied with power or electricity via the utility system or the ‘purchasers’.

Utility-scale solar plants don’t, therefore, provide energy to final users directly. Other players purchase this electricity from the plants and deliver it to those in need. The solar power producer, whether a business or an investor, often has a PPA (Power Purchase Agreement) with the purchasers of the power, typically for a certain time period, to accomplish this.

In recent years, the idea of utility-scale solar plants has experienced growth and interest all over the world. Investments in utility-scale solar power facilities are viewed as an effective strategy to minimise harmful emissions and shift attention to maximising the use of clean energy in many nations. The global utility-scale electricity market is anticipated to expand at a CAGR of 6.3% from 2023 to 2028, according to Global Markets Estimates.

What are the types of Utility-scale Solar Projects?

1. Solar photovoltaics (more commonly known as solar panels) Utility-scale solar projects use many solar panels installed together to create a power plant. Its configuration is quite like that of rooftop solar panels. The only differentiating factor is that thousands of solar panels are used on large and open lands.
2. Concentrated solar power plants use curved lenses or mirror-like panels to reflect sunlight onto a central receptor. The heat energy collected there is either stored or used to generate electricity.

What are the sizes of Utility-scale Solar Projects?

There is no agreed-upon set of measurements used to determine the approximate size at which a project is considered to be of utility scale. According to the Solar Energy Industries Association, utility-scale projects must be over 1 megawatt (MV). However, the markets in which these projects are being built determine the acceptable sizes.

What are the advantages of Utility-scale Solar Projects?

1. Cost-effective over time. Over the past few years, the cost of solar energy has steadily decreased. The long-term price stability of electricity might also be aided by these massive initiatives.
2. Usually, generate more power. These projects are typically located in ideal places with continuous access to direct sunshine for long periods of time due to the need for big-scale requirements. This enables storage or continuous supply of energy, even at times of high demand.
3. Reduces harmful emissions as compared to other sources. Compared to energy sources that rely on fossil fuels, utility-scale solar contributes to the decrease of dangerous pollutants and carbon emissions. Additionally, they give families and businesses that lack access to rooftop solar power alternatives, keeping the grid clean.
4. Can help improve economic activities? Utility-scale solar can open up new employment opportunities in building, operations, and maintenance due to the magnitude of the project.

Due to the advantageous nature of these undertakings, countries, and companies are looking to invest more in utility-scale solar power plants.

At Sterling and Wilson, we provide expertise and guidance at every step of the way as you choose to invest in this booming sector.
Visit — https://www.sterlingandwilsonre.com/businesses/utility-scale

Originally published at http://realestateandepc.wordpress.com on January 13, 2023.

Meaning of Utility-scale Solar

 

Utility-scale Solar is a popular phrase in the discussion of renewable energy. However, determining the precise definition of the phenomenon can be tricky. A simple approach will state that Utility-scale Solar is the large solar power projects or plants that produce electricity directly for the utility grid. The utility grid then generates the electricity to end customers through power purchase agreements. We must consider the size, location, state policy, voltage, interconnection type, and purchase details of solar power to get a more comprehensive definition.

Different Definitions of Utility-Scale Solar

Solar power is one of the top renewable energy sources. Given its many advantages, a large number of projects are currently operating all over the globe. The continuously reducing solar cost, coupled with the vast solar-plus-storage, will further the development of solar projects to a large extent.

Let’s have a look at the different definitions of Utility-scale Solar and try to build an overall understanding of the same.

Defining Utility-scale Solar Based on Size

Utility-Scale Solar projects are often termed in-front-of-the-meter systems, while Distributed Generation is called a behind-the-meter system. The latter is joined with the energy load of a facility and generates the power directly to the facility. Community Solar can create a challenge in accepting this definition. Although Community Solar links to in-front-of-the-meter and is bigger than a Distributed Generation system, it is not a Utility-Scale Solar. Utility-Scale Solar has been defined variously based on the size of the solar projects. A leading trade group of the US solar industry, The Solar Energy Industries Association (SEIA) considers solar projects generating more than 1 MW of solar energy to be Utility-Scale Solar. On the other hand, the National Renewable Energy Laboratory (NREL) US has labelled solar projects with 5 MW as Utility-scale Solar. The threshold ranges between 2 MT to 25 MW in some markets.

Defining Utility-scale Solar Based on Wholesale Power Markets

The market design is an essential factor in defining Utility-scale Solar. In regulated power markets, utilities retain and manage all the mediators involved in delivering electricity to homes and businesses from power plants. The utilities and Public Service Commission are responsible for setting deciding markers for Utility-scale Solar. Deregulated power markets treat electricity as any other commodity. These markets are comparatively organised and competitive.

Defining Utility-scale Solar Based on Power Purchase Agreements

Utility-scale Solar power projects require funding that comes from Power Purchase Agreements. The solar project developers come into agreements with utility, industrial, commercial, and institutional customers. The Power Purchase Agreements over the pre-decided period generate the funding. The agreements can span from 12 to 20 years. Power purchasers sign the financial contract in Virtual Power Purchase Agreements (VPPA) and are subject to the differences in the pre-fixed price of solar energy. If the market price at which solar power is finally sold is higher than the pre-fixed price of the VPPA, the power purchasers receive the differences. In case the market price is lower than the VPPA price, the power purchasers pay off the difference.

Types of Utility-scale Solar

Utility-scale Solar is of two types.

• Solar Photovoltaics or Panels: The power plant is built by installing many solar panels.
• Concentrated Solar Power or Thermal: Thousands of helioscopes reflect sunlight onto a central collector.

Solar power is one of the top renewable energy sources. Given its many advantages, a large number of projects are currently operating all over the globe. The continuously reducing solar cost, coupled with the vast solar-plus-storage, will further the development of solar projects to a large extent.

Originally published at http://realestateandepc.wordpress.com on December 21, 2022.