Solar takes off with US power supply deal [View All]

Solar takes off with US power supply deal

By Matt Peacock

• Video: Aust technology to revolutionise clean electricity (ABC News)
• Video: Extended interview with Dr David Mills (7.30 Report)

Two of America's biggest power utilities have unveiled plans for a multi-billion-dollar expansion of solar power supply, backing the argument that solar energy can indeed become a viable alternative to coal-fired electricity.

The company at the heart of the development is Ausra. It was started by Australian solar expert David Mills, who left this country for California earlier this year to pursue the further development of his ground-breaking work.

What makes the announcement more significant is that the utilities are confidently predicting that their solar power will soon be providing baseload electricity - that is, day and night - at prices competitive with coal.

Those associated with the project believe it could signal a paradigm shift in electricity generation.

After decades as a fringe player in the energy industry, solar power is finally taking off in the world's largest economy.

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Better than coal or nuclear

Dr Diesendorf says the huge US investment into solar will soon make talk of clean coal and nuclear as solutions to climate change redundant.

"Basically, the solar thermal technology will be on the ground, certainly in the United States and many other countries long before so-called clean coal and nuclear power," he said.

Mr Khosla says solar power is developing rapidly and will be cheaper than either nuclear power or 'clean' coal.

"We think we can move much faster than nuclear and on an unsubsidised basis, we will be cheaper than nuclear power, and we should be cheaper than IGCC coal-based power generation," he said.

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