A front page story in the Daily News Saturday under the headline “Solar panel initiative getting costlier” reveals for the first time the contents of a definitive $1 million study (dwp-iea.pdf ) analyzing the Department of Water and Power’s operations and performance over the last five years.
City Hall reporter Rick Orlov got his hands on the year-long study by PA Consulting (IEA-excerpts.doc) and reported that Measure B, the city initiative on the March 3
ballot that calls for the installation of rooftop panels to capture
solar energy, “could cost more than double current estimates.”
significant technology advances and yet unseen economies of scale, it
would be challenging at best for LADWP to be able to implement the plan
for the current $1.5 billion low estimate LADWP has provided,” the report (IEA-summary.doc) entitled “Industrial, Economic and Administrative Survey” said.
The study estimates the minimum costs at $2.8 billion to $3.6 billion and warns that rooftop panels
on industrial, commercial and government buildings would generate only about 20 percent of the capacity the DWP needs,
with much greater energy coming from wind turbines.
Per kilowatt-hour of energy produced, over its life, solar The report said the utility has a continuing “It is unclear that LADWP’s current strategic
(photo voltaic) is expected to cost more than two times the cost of
concentrated solar generation and six times the cost of typical wind
generation,” the report said, adding the cost of rooftop solar is
$7,000 per kilowatt-hour, three times that of wind and 1.5 times that
of concentrated solar.
problem in how it is managed and does not have a comprehensive approach to strategic planning and long-term analysis.
planning process and financial analyses are sufficient to appropriately
plan and manage such a complex portfolio of assets,” the report said.
Per kilowatt-hour of energy produced, over its life, solar
The report said the utility has a continuing
“It is unclear that LADWP’s current strategic