World’s largest solar project wins $1.4bn federal loan guarantee

February 23, 2010

The Ivanpah project will consist of three CSP plants offering 392MW generating capacity

The federal government is to provide a $1.37 billion loan guarantee to help developer BrightSource Energy with its huge Ivanpah solar power project in the Mojave Desert.

California’s first large-scale commercial solar thermal power plant in nearly two decades, when constructed, it is expected to be one of the world’s largest solar energy projects.

The federal support will be provided under the American Recovery and Reinvestment Act, helping the company based in Oakland, California, to build three utility-scale power plants at the Ivanpah site.

The project, which was recently reduced in size slightly to appease conservation concerns (See this BrighterEnergy story), should see 392MW of generating capacity installed.

Located on publicly-owned land in Southeastern California, near the Nevada border, the Ivanpah project would nearly double the existing capacity of concentrated solar power plants in the US, the Department of Energy said.

It would supply enough electricity for the equivalent of 140,000 California homes.

“Global leader”

Announcing the loan guarantee, Energy Secretary Steve Chu said: “This is an investment in American jobs and the clean, renewable energy our economy needs. We’re not going to sit on the sidelines while other countries capture the jobs of the future – we’re committed to becoming the global leader in the clean energy economy.”

BrightSource’s technology will use thousands of heliostats on three solar fields – each heliostat featuring two mirrors that track the sun in two dimensions.

The project is expected to see construction on the first plant beginning in the second half of 2010, for an operational start in 2012. The second plant should begin operations mid-2013, while the third phase should start up in late 2013.

Electricity is to be sold under long-term power purchase agreements with the Pacific Gas & Electric Company and the Southern California Edison Company.

“Tremendous validation”

Commenting on the loan guarantee, BrightSource Energy CEO John Woolard said it served as a “tremendous validation of our technology”.

We’re truly humbled by the opportunity to help build our nation’s green energy economy - John Woolard, BrightSource Energy

Mr Woolard said: “We’re truly humbled by the opportunity to help build our nation’s green energy economy by creating good jobs for local communities. We look forward to beginning construction on the Ivanpah project, making a real and substantive impact on climate change, and creating a model for environmentally-responsible energy projects.”

BrightSource’s construction contractor has already entered into project labor agreements with various trade unions for the construction of the project. It is expected to support 1,000 construction jobs, and once operational 86 permanent roles.

The developer must still meet a number of financial and environmental conditions in order to close its loan, along with securing its local, state and federal permits.

The Bureau of Land Management, which owns the land involved, is currently reviewing the Ivanpah project under the National Environmental Policy Act.