Solar beats natural gas in landmark US judicial ruling

January 3, 2014
Facebook
Twitter
LinkedIn
Reddit
Email

An administrative judge in the US state of Minnesota has ruled solar generation to be a better investment than natural gas for electric and natural gas utility, Xcel Energy.

The judgment is the first time in the US that unsubsidised solar energy has been officially ruled to be a better deal for ratepayers than natural gas in a competitive bidding process.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The competitive bidding of utility-scale generation projects was ordered by Minnesota’s Public Utilities Commission to choose the most cost-effective projects to help Xcel reach what the commission said was an additional 150MW of new capacity needed by 2017.

Administrate judge Eric Lipman compared five energy resources to determine the most cost-efficient generation to meet forecast energy shortfalls. A 100MW PV project by Minnesota-based utility-scale wind and solar developer, Geronimo Energy, was chosen over the others.

Geronimo proposed to build 20 solar parks, across 17 counties in Minnesota – some as big as 70 acres and costing an estimated US$250 million. Named the ‘Aurora Solar Project’, Geronimo’s solar project would receive no state or utility subsidies, but would qualify for a federal investment tax credit. The Aurora project is approved, with completion expected by 2016.

In his ruling Lipman said the project was the best way for Xcel to meet its near-term needs.

Judge Lipman ruled if solar is not sufficient to meet Xcel’s surplus energy demand, the utility should consider purchasing power from one of its competitors.

Solar was considered in comparison to a gas turbine at an existing plant in Mankato, proposed by Calpine, and two turbines at Cannon Falls and Hampton, proposed by Invenergy, as well as Xcel’s own proposal for a gas plant.

Lipman’s ruling still needs to be upheld by the Public Utilities Commission.

The commission has a six to eight-month window to review and process Excel’s energy resource plans.

In evidence given to the hearing in November, Excel disputed the commission’s estimates of its required new capacity, suggesting this week’s ruling may be challenged.

But Geronimo’s vice president of development, Elizabeth Engelking noted at the evidentiary hearing that “while Xcel’s overall need in megawatts may be uncertain, there is no uncertainty regarding Xcel’s need to add solar resources.”

Read Next

December 18, 2025
French renewables company Voltalia has started site preparation works on a 43MW/135MWh solar-plus-storage project in French Guiana, a French overseas territory in South America.
December 18, 2025
Pivot Energy has completed three financing agreements, totalling US$225 million, while CleanCapital has raised US$185 million.
December 18, 2025
UAE-based renewables developer AMEA Power has commissioned a 120MW solar PV plant in the central Tunisian governorate of Kairouan, the country’s largest operational PV project.
Sponsored
December 18, 2025
If we imagine the development of PV industry in terms of scale and quality on a single curve, its trajectory has clearly been moving upward.
December 18, 2025
Spanish IPP Grenergy has secured a senior non-recourse financing agreement worth €98.8 million for the172MW Ayora solar PV project in Spain.
December 18, 2025
Petrobras has acquired 49.9% of solar developer Lightsource bp’s subsidiaries in Brazil, for a 'not materially significant' amount of money.

Upcoming Events

Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 24, 2026
Dallas, Texas
Solar Media Events
April 15, 2026
Milan, Italy
Solar Media Events
June 16, 2026
Napa, USA
Solar Media Events
November 24, 2026
Warsaw, Poland