Bob Kelly is co-chairman of the Managing Board of Amoco/Enron Solar. Since 1981 he has fulfilled a number of executive rules with Enron Corporation - one of the world's largest independent power project developers and electricity producers - including Executive Vice President and Chief Strategy Officer. He now heads Amoco/Enron's Solar Power Development Unit.

Firstly, could you give an insight into how two giants in the energy business - Amoco and Enron - came to join forces in PV venture?
From Enron's point of view, we consider ourselves to be fairly forward-thinking, both in respect of investing in promising energy technologies, and in responding to new demands from our customers. PV fits well with our business strategy to provide clean energy services, and we believe that we can speed the process whereby PV electricity reaches economic, as well as environmental attractiveness for the grid-connected market. For its part, Amoco has been a long-term proponent of PV through its investment in Solarex - the largest US owned manufacturer and marketer of PV modules and systems.
During 1994, both parties were looking for possible technology partners - Enron was searching for manufacturers with real experience in the PV market and the potential to provide the hardware for large-scale projects, while Amoco (Solarex) was looking for partners with experience in the electric power market and finance expertise, who could commit to PV production in volume. This joint venture, which has been gathering momentum during the past two years, seems to be the perfect marriage of skills.

The commitment to volume production is presumably the key to making the partnership work?
Amoco/Enron plans to increasingly focus on the grid-connected electricity market - PV in buildings and multi-MW solar farms. For large-scale plants in particular, modules have been the dominant cost component. So, if we are to make these projects economic our starting point has to be low cost modules. This can only be achieved if production is significantly scaled-up. Solarex, the manufacturing unit, is a separate business unit from my area, power project development, but obviously our concerns are closely inter-linked.
Our new 10 MW facility in James County, Virginia is nearing readiness for full-scale production of the high-voltage, multi-junction amorphous silicon modules that we will use on our solar farms. There are possibilities for us to construct plants of similar size in China and India to tie in with the power projects we are chasing there. The job of the Power Development Unit is to attract business, which will support such volume production. The two go hand-in-hand. These developments will give us both he means and market to fulfil our objectives: that is to be the main player in the business of proving clean, affordable power world-wide.

Do you foresee any risks in using your new multi-junction amorphous silicon modules for these ambitious projects?
This product has been rigorously developed for precisely this type of application and to meet our exacting standards. We are entirely confident that they represent the next generation of PV modules and they will prove their capability out in the filed, where it really counts. Furthermore, Solarex has been producing both single- and multi-junction amorphous silicon modules for several years already.

You mentioned India: the agreement you recently signed there must be very encouraging for you?
We are very excited about the power purchase agreement with the Rajasthan State Electricity Board. This 25 year commitment to buy up to 50 MW of power represents a change of gear in the development of the PV market. This is the kind of volume that will lead to economies of scale in module production, which will enable us to achieve the cost breakthroughs that we all know are possible. Our next objective is to finance the project. Amoco/Enron will obviously be making a significant capital investment, but we are looking to funds like the Global Environment Facility (GEF) and the Indian Renewable Energy Development Agency (IREDA) to contribute towards the USD 100 million costs.

What about other similar development projects?
We are firmly committed to the developing country market. The implications for the global environment of a massive increase in energy demand - which is happening as we speak - are potentially phenomenal. The industrialized world cannot sit back and watch while these countries try to balance economic and social development within the confines of greenhouse gas emissions directives. There is a realistic sustainable development alternative. We know that PV can enable many developing countries to progress to a clean energy supply for the 21st century. We see ourselves as facilitators of this process, which is why we have decided to put our money where our mouth is and actually start the ball rolling in places like India and China.
Having said that, Amoco/Enron is first and foremost a business, so we fully expect that this will also be a long-term profitable market for us. There is the distinct possibility that further agreements, in addition to the Rajasthan commitment, will be signed in India, and we are presently undertaking a feasibility assessment for the State Science and Technology Commission in the People's Republic of China for a 10 MW manufacturing facility and a 150 MW power plant. If these come to fruition it will be great news for PV and great news for Amoco/Enron.

But presumably you are not concentrating only on the potential developing country market?
Certainly not. At home, we are currently negotiating with Hawaiian Electric Company and it subsidiaries to build a 4 MWp solar power plant on the Island of Hawaii. The facility, which will be brought on-line next year, is going to cost around USD 7 million, but we have already secured partial financial support from the DOE in the form of a USD 1,1 million award through the Utility Photovoltaic Group. This project will be an excellent showcase for us to demonstrate that our new generation thin-film modules can deliver the goods in the competitive US market. We estimate that the installed costs will be close to the 2 USD/Wp mark, which is widely seen as the breakthrough price for cost-effective bulk power production.

And do you think you can compete in economic terms with conventional energy technologies?
We are now negotiating with the Corporation for Solar Technology and Renewable Resources here in the US to build the first 10 MW solar farm of up to 100 MW in the Nevada Desert. We estimate that the project would be able to sell electricity profitably form that plant for 5,5 cents/kWh over 30 years. That's cheaper than the average price that the US government is now paying for its power. While the project relies on tax exempt financing, we are optimistic it can be done.

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