Tennessee to spend stimulus money on solar projects

NASHVILLE — Tennessee will spend $62 million in federal stimulus money on a solar power generation and research, Gov. Phil Bredesen said Wednesday.

The Democratic governor said a five megawatt solar plant in Haywood County would be among the largest in the eastern United States. A plant that size could generate power for about 600 to 700 homes, he said.

Gov. Bredesen calls the plant a “solar farm” because he wants to grow solar generation capacity, using proceeds from the sale of electricity to the Tennessee Valley Authority.

“The reason I call this a farm is that, once we plant this thing, it is going to continue to grow,” he said.

The governor first proposed the Tennessee Solar Institute in an address to lawmakers earlier this year, seeking to spur green energy jobs and affordable clean energy technology. The research center, a joint effort by the University of Tennessee in Knoxville and the Oak Ridge National Laboratory, is to be housed at UT’s new Cherokee Farm Innovation Campus.

The U.S. Department of Energy would have to approve Tennessee’s plans before the projects could get under way. The money would be about evenly divided between the two projects.

Gov. Bredesen said the federal money is restricted to alternative energy programs and could not be spent on plugging other budget holes.

“If I could use this money for children’s services or mental health, I would,” he said. “But it is limited to these energy investments.”

In a related development, the Energy Department and the National Association of Regulatory Utility Commissioners this week selected Tennessee and six other states for a study on benefits and barriers to solar energy development.

“Hopefully we can learn what is working in other states and be able to evaluate the potential for solar energy in producing power in Tennessee,” said Eddie Roberson, chairman of the Tennessee Regulatory Authority.

Tennessee has enjoyed a recent string of success in green energy development, including two massive plants that will make polysilicon, a material used to make solar cells.

Munich, Germany-based Wacker Chemical earlier this year announced plans to build a $1 billion polysilicon plant in rural southeast Tennessee, while Michigan-based Hemlock Semiconductor Corp. has broken ground on a $1.2 billion plant in Clarksville.

State officials expect both projects could grow, depending on demand. Gov. Bredesen said the cost of solar panels is expected to decrease in the future.

“It is more expensive than coal or nuclear today in Tennessee, but not so far out of range that you can’t think of a day where it becomes very competitive,” he said. “It helps to get us on the front edge of the curve on this stuff, and establish Tennessee as place that is serious about investing in these alternative technologies.”

Bredesen said he expects the plant to use materials produced by Sharp Electronics Corp., which manufactures solar panels in Memphis, and AGC Flat Glass in Kingsport, which makes glass for solar panels.

The plant will be the largest solar installation in Tennessee. TVA has eight small photovoltaic systems around the state, mostly for demonstration purposes at high visibility locations.

Associated Press Writer Duncan Mansfield contributed to this report from Knoxville.