The U.S. Department of Energy has announced final approval of a $852 million loan guarantee for a major concentrated solar power (CSP) project, part of the DOE’s plan to double the installed capacity of utility-scale solar energy in the USA.
The $852 million surety for the Genesis Solar Project is around $170 million more than was initially put forward by Energy Secretary Steven Chu back in June when he announced a $2 billion loan package to build three large-scale CSP plants in the California desert.
The DOE says by guaranteeing funding for the 250 megawatt Genesis Project, sponsored by NextEra Energy Resources and financed by Credit Suisse AG, it can increase the nation’s current installed concentrated solar power capacity by about 50 percent.
With $38 billion in loan guarantees for various renewable energy projects across America, the DOE’s Loans Program is banking on success in the south-west. But as we reported recently, the DOE’s $2.1 billion arrangement for the 1,000 megawatt Blythe CSP facility went sour when low-cost solar panels prompted Solar Trust of America to switch one half of the massive plant over to photovoltaic technology, thereby forfeiting access to DOE cash.
If this move, or the fact Genesis seems to be over-budget before construction even begins, is an indicator of CSP’s shakiness in face of competing technologies, Chu wasn’t giving anything away.
"This project creates jobs, avoids greenhouse gas emissions and helps strengthen our nation’s renewable energy future," said Secretary Chu. "With the support of loan guarantees, we will enable the deployment of clean, renewable sources at scale, which will help bring down the cost of solar power in the years to come."
NextEra Energy will build the Genesis plant using parabolic trough solar thermal technology, which they say has been used commercially for decades. When complete, the plant will offset 320,000 tons of carbon emissions each year and provide clean energy for around 48,000 homes. The company expects to create nearly 850 new jobs building and operating the plant.
