Tom O'Neill (in suit) develops new businesses for Exelon, an energy company best known for its fleet of nuclear power stations. The Chicago solar project is the company's largest to date. (Photo by Shawn Allee)
There’s a commercial-scale solar project
that’s getting some buzz in Chicago and
beyond. The builders promise to use up
some abandoned industrial space within
the city limits… and hope to provide
some local jobs. City governments across
the country like both of those ideas.
Shawn Allee looks at why this
urban solar project’s falling into place,
and whether it might get repeated across
the country:
Transcript
There’s a commercial-scale solar project
that’s getting some buzz in Chicago and
beyond. The builders promise to use up
some abandoned industrial space within
the city limits… and hope to provide
some local jobs. City governments across
the country like both of those ideas.
Shawn Allee looks at why this
urban solar project’s falling into place,
and whether it might get repeated across
the country:
Carrie Austin is a Chicago alderman, and, as she says, she’s constantly dealing with problems unique to Chicago. But she’s convinced she’s got one problem a lot other cities face, too: what to do with vacant industrial land. She’s got 200 acres of it in her neighborhood.
“The environmental issues left from the company, left us with such devastation without any regards to human life. That has been our fight all these years. ”
Austin says, even with some clean-up in recent years, it’s been tough getting someone to come in with some work – and jobs.
“We’ve talked to FedEx, Kinkos and many other corporate offices. Even to Wal-Mart, bringing some of their distrubution to such a large piece of land. But to no avail.”
Austin says there’s a portion of this land she’s not so worried about now. The energy company, Exelon, is putting up solar panels on about 40 acres. And for the first time in a long time, there’s the sound of new construction there.
“This site’s been vacant for thirty years.”
That’s Tom O’Neill – he develops new businesses for Exelon. We’re walking along a padded-down field of soil where there used to be factory walls, machines, and concrete floors.
“What’s changed is you don’t see the brush and the shrubbery and there was a building that used to be here. The whole site is now graded and you can see signs of the construction where the foundations are going to come out. If you look further west, you can actually see the foundations going in for the solar panels, so it’s changed quite a bit.”
This is a transformation a lot of cities would envy, but I’m curious why Exelon’s doing this in Chicago and whether it’ll repeat it in other cities. On the first question, O’Neill says Exelon’s putting up the panels because it’s got a plan to cut its own carbon emissions.
“This project here will displace 30 million pounds of greenhouse gases per year. So it is a part of our low-carbon initiative.”
This Chicago solar project qualifies for federal loan guarantees and tax credits, but even with that, it’s not clear Exelon will make a profit. So, the question is: will Exelon repeat this? O’Neill says he’s hopeful.
“It is a demonstration project to show what can be done and with its success will come other successes.”
To get an industry-wide view of whether other cities might get urban solar farms, I talk with Nathaniel Bullard. He analyses solar power markets for New Energy Finance, a consulting firm. Bullard says cities are eager to re-use land that can be an eye-sore, or even cost a city money to maintain. For example, some southwestern cities have old landfills – and they’re planning to put solar farms on top.
“We’ve actually see those go much larger than what’s on the books right now for Exelon.”
Bullard says companies are taking a closer look at solar power because states are mandating utilities buy at least some. And the US Congress changed some tax laws recently. Exelon is taking advantage of that.
“First thing to note in the Exelon project is that it is Exelon itself which is going to own its project. If this was a year ago, they would be purchasing the electricity on contract. Now, with a change in policy, investor-owned utilities is allowed to own the asset itself and take advantage of tax benefit.”
Bullard says we’re likely to see more urban solar projects like Chicago’s – if the technology gets cheaper and government incentives stay in place.
Bullard has this joke about solar power that he swears is true. He says, in the solar industry, the strongest light does not come from sunshine – it comes from government policy.
For The Environment Report, I’m Shawn Allee.