March 29, 2007 12:02 PM PDT

Portugal fires up solar power plant

General Electric, PowerLight and Portuguese utility Catavento cut the ribbon on a solar power plant that will provide enough electricity for about 8,000 homes in the area.

The plant, located in the sunny center of the country, is capable of churning out 11 megawatts of power. Homes consume between 1.5 to four kilowatts, depending on the size of the home and location.

The Iberian Peninsula has emerged as one of the most active regions for solar sales. Spain and Portugal are bathed in sunlight and their respective governments have put together programs to encourager renewable energy. Spain is now the fastest growing solar market in the world, according to solar execs. (Portugal also has a wave project underway.).

The new plant generates electricity through photovoltaic panels: these crystalline silicon panels effectively snare electrons out of sunlight. By contrast, solar thermal technology takes heat from the sun, uses the heat to create steam, and then employs the steam to turn a turbine.

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