U.S. Offers $1.37 Billion Loan Guarantee to California Solar Power Project

OilPrice.com ^ | 02/23/2010 | darrell Delamaide

[Bookworm22]

The U.S. Department of Energy is using funds from last year’s economic stimulus package to guarantee $1.37 billion in loans for a solar energy project in California’s Mojave Desert.

The project mounted by BrightSource Energy would be the world’s largest solar thermal power plant when built.

“We’re not going to sit on the sidelines while other countries capture the jobs of the future,” Energy Secretary Stephen Chu said in announcing the conditional loan commitment. “We’re committed to becoming the global leader in the clean energy economy.”

The Ivanpah Solar Complex will be located on federally owned land in southeastern California, near the Nevada border. The three combined plants in the complex will generate 400 megawatts of electricity and will supply power to 140,000 California homes. It will nearly double the existing generation capacity of solar thermal power in the U.S.

“The loan guarantee commitment…serves as a tremendous validation of our technology, the BrightSource team’s ability to execute, and the Ivanpah project’s role in meeting our nation’s large-scale renewable energy needs,” John Woolard, BrightSource chief executive, said. Full article at: Solar Power Project

[Touch Not the Cat]

.

[TSgt]

Construction of the complex will employ approximately 1,000 people, and its operation will create 86 permanent jobs.

$1.37 BILLION for 86 permanent jobs?

[highlander_UW]

The US can't afford to just give CA 1.4 Billion. And before someone points out that it's just a loan guarantee...does anyone have confidence in CA being able to pay their bills?

[WILLIALAL]

With a normal 3% return on a 1.37 Billion investment, how long will it take an operation like this to even break even. That is a lot of money for solar power.

[digger48]

Not much concern for the "pristine" desert?

[Army Air Corps]

The Ivanpah Solar Complex will be located on federally owned land in southeastern California...

Meanwhile, oil and natural gas companies have to jump through tremendous hoops just to get a lease or drilling permit on Federal land.

[Army Air Corps]

Why, that’s a bargain by Federal standards!

[digger48]

oops...

[cripplecreek]

Apparently there are 86 people in California who blow REALLY well.

[bray]

The Solar Myth:
http://www.brayincandy.com/id208.html

Pray for America’s Freedom

[Army Air Corps]

That is a lot of glass to keep clean or replace when it is etched by duststorms.

[Psycho_Bunny]

It’s probably going to take a civil war to break the government of its spending addiction.

[cripplecreek]

Its amazing how much land these “clean” energy sources require.

Consumers Energy in Michigan needs 60,000 acres for between 40 and 70, 4 to 5 hundred foot windmills that will be an eyesore over hundreds of square miles.

Personally, I’d rather have a couple hundred acres of coal, gas, or nuke plant hidden behind a forest.

[Army Air Corps]

I agree completely.

[cripplecreek]

If that makes me a NIMBY, so be it. Tens or hundreds of thousands of square acres is a far cry from a few hundred easily hidden acres.

[Army Air Corps]

I agree. A nuclear, coal, or natural gas powerplant has a smaller footprint, produces power 24/7 and supplies a steady baseload.

[businessprofessor]

More corporate welfare. How does a politically motivated loan validate the concept? The market place validates commercial ideas, not government. I doubt that the cost of the transmission lines and backup baseload power are factored into the costs listed for this solar plant. However, these costs will definitely be included in utility rates. The utilities have been compelled to buy power from this plant at politically determined prices. Where will the coolant come from to achieve the energy storage? This plant is located in the middle of the dessert.

[Nachum]

The list, ping

[wolf78]

Consumers Energy in Michigan needs 60,000 acres for between 40 and 70, 4 to 5 hundred foot windmills that will be an eyesore over hundreds of square miles.

Ideally land for windmills is dual-use, i.e. farmland or pastures. Eggplants and broccoli don't mind the "eyesores".

Its amazing how much land these “clean” energy sources require.

If it's a desert - so what? A.) there's hardly any plants and wildlife and b.) there are a lot more deserts than solar would ever need. Nuke plants do really have a small footprint, but I find it funny how some guys fret over solar's large footprint while at the same time condoning mountaintop removal mining for coal. Those should really make up their minds.

[wolf78]

Meanwhile, oil and natural gas companies have to jump through tremendous hoops just to get a lease or drilling permit on Federal land.

Well, nuclear gets the same kind of benefits (i.e. loan guarantees etc.). Either way, a loan guarantee still is a subsidy, as it artificially lowers the interest rate premium on risky investments.

[Army Air Corps]

True. I was noting how these “green” projects seem to get a pass on Fed land while less intrusive oil and gas drilling is treated as a pest on the same kind of land.