Wednesday, Oct. 24, 2007 | 7:27 a.m.
6 acres
For the solar power plant site to be operated by the Swiss company Sustainable Technologies LLC.
1 megawatt
Of power produced by the plant - 63 megawatts less than the world's third-largest plant, run by Nevada Solar One.
5.5 cents
Per kilowatt hour will be charged by Sustainable Technologies, less than the 6 cents to 9 cents charged on the market.
Boulder City, perhaps best known as the city that built Hoover Dam , is positioning itself to become an industry leader in the next generation of power production.
Capitalizing on its abundance of bright sunlight, vacant desert and transmission stations capable of sending power to the rest of the country, the small southeastern Clark County city already has one solar power plant and soon might have another.
Out in the desert , mirrors from Nevada Solar One, the world's third-largest solar power plant, can be seen reflecting light. The city also has Eldorado Energy, a gas-fired power plant. Both sit on the outskirts of the city.
And now the city might add a second, smaller solar plant to its cluster.
"Boulder is really a good place for solar facilities," said Bob Boehm, director of the UNLV Center for Energy Research. "It's up out of the smog of Las Vegas. It's a nice , big, fairly flat area of land."
Sustainable Technologies LLC wants to lease six acres to build a small, 1 megawatt solar power plant. By comparison, Nevada Solar One can produce 64 megawatts, enough to power more than 40,000 homes.
UNLV also plans to put a solar technology center in Eldorado Valley to study the solar projects in the area.
"We welcome any additional solar projects," said Don Points, chief financial officer of Acciona Solar Power, which owns Nevada Solar One. "The more solar projects we have, the better it is for the industry. It is a very desirable site."
The proposed deal would allow the city to purchase power at a discounted rate and buy the plant at the end of a five-year lease. The Swiss company Sustainable Technologies would operate the plant after buying it from its builder, Utah-based International Automated Systems Inc. The plant is billed as cutting-edge technology that would use about one-tenth of the water needed to cool typical solar thermal plants.
Solar thermal plants use the sun to heat fluid that turns a turbine to create electricity. The plants use water for cooling and to turn the turbine.
The proposed plant does not yet have a price tag. It would sell power to the city's electric utility at 5.5 cents per kilowatt hour , compared to the 6 cents to 9 cents it currently pays, depending on the market.
"We're going to provide them with an avenue to test this out," said Ned Shamo, the city electric utilities manager. "We want to help them prove the technology. If it does work , hopefully the city can lease a larger amount of land to somebody."
Not to mention that the city could buy the power at a reduced rate and have the option to buy the plant at the end of the lease.
Some in the city, though, look at International Automated Systems skeptically. Financial records filed with the Securities and Exchange Commission show zero operating income for a nine-month period ending in March and a net loss of more than $6.3 million. The records also call the company's long-term viability into question, including an assessment that it "may be unable to continue as a going concern for a reasonable period of time."
"The only thing I have heard is the rumble throughout town that they have never made a dime," Councilwoman Linda Strickland said.
IAS did not return phone calls or e-mails. Little is known about the plant's would-be operator , Sustainable Technologies. It is not registered with the secretary of state.
"They make significant claims, have unusual approaches and give very little detail about specifics," Boehm said after reviewing the company's Web site.
That isn't deterring Boulder City officials, though.
"I talked to them and the people I've talked to seem to be fairly reputable," said Shamo, a 30-year city employee.
The city attorney has said the city will not deal directly with IAS, so that company's finances should be of little concern. In addition, many officials think the city could protect itself from loss through the contract and stress that Boulder City would only purchase power from the plant.
Boulder City expects to earn money from the lease, with the terms still to be decided. Leases from the two other plants net the city about $1.5 million annually.
Many in the city support the proposed plant, including a new community interest group pushing the city to lease its land to earn revenue.
"You're generating clean energy and you're generating more income for the city," said Rich Loudin, a member of Boulder City Solutions. "I love the idea of solar and I think it can be great for the city."
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