California regulators Wednesday approved construction of what will be the world's biggest solar-power plant, one of a string of super-sized developments in the state that will more than double the solar power generation capacity in the U.S.
The $6 billion project to be located in the desert near Blythe, Calif., is being developed by a joint venture between Germany's Solar Millenium AG (S2M.XE) and privately held Ferrostaal AG. The 1,000-megawatt project is one of nine large solar-thermal power plants the California Energy Commission has pledged to approve by the end of the year. Together they will generate enough power to serve about 800,000 homes. Unlike familiar photovoltaic solar panels, solar-thermal plants utilize curved mirrors that direct the sun's heat to a central tube in which steam is generated to drive turbines.
Driving the surge in solar-power development is a state mandate requiring large utilities to get a fifth of their power from renewable sources. Pending rules would boost the mandated portion to a third by 2020. The coming solar-power boom, which also includes the construction of several large photovoltaic solar-panel farms, is widely expected to create thousands of jobs in the economically hard-hit state.
The joint venture, Solar Trust of America, hopes the U.S. Energy Department will approve its applications for federal loan guarantees for the first two of four total units by October, so construction can begin this year, said Chairman and Chief Executive Uwe T. Schmidt. He added several potential investors, including large international financial institutions that he declined to identify, have expressed interest in helping finance the project, which the company estimates will create about 7,600 construction and manufacturing jobs.
State and federal regulators pledged last year to work together to fast-track approval for a raft of large solar power projects to enable developers to meet a Dec. 31 deadline required to take advantage of federal financial incentives.
wsj
