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Don't Miss The Great Solar Debate: Where Does the Global Solar Industry Stand? ×

$4.5 Billion in Loans To Support Three First Solar Projects

Steve Leone, Associate Editor, RenewableEnergyWorld.com
July 01, 2011  |  4 Comments

Plans for three separate large-scale solar projects in California have received a significant boost with conditional loan guarantees totaling about $4.5 billion.

The announcement from the Department of Energy will give investors federal backing and sets in motion three installations totaling more than 1,300 megawatts (MW) of capacity to be developed by Arizona-based First Solar, which plans to eventually sell the projects. The developments in the Mojave Desert, Riverside County and San Luis Obispo County are expected to all be online by 2015.

The large-scale installations are projected to add 1,400 jobs in California during peak construction. First Solar will provide its Cadmium Telluride (Cd-Te) thin-film PV modules for the projects from a new manufacturing plant that has begun construction in Mesa, Ariz., as well as from its recently expanded manufacturing plant in Perrysburg, Ohio.

According to First Solar spokesperson Alan Bernheimer, the company will double its manufacturing capacity from 1.5 GW at the beginning of 2011 to nearly 3 GW by the end of 2012. The existing factory in Ohio employs 1,200 people, and the new Arizona factory will employ another 600 workers. About 400 to 500 workers will be needed to build the factory.

“This is good for American companies, American jobs, American independence,” said Bernheimer.

The company also hopes that federal backing like this will give investors confidence in a still emerging industry.

“The projects could have been difficult to finance and to have built [without the DOE],” said Bernheimer. “There are just not that many on this scale. Once plants this size are established, the capital market will be less leery and it won’t require federal assistance.”

The DOE loan comes from a portion of the federal stimulus package designed for renewable energy infrastructure. But the ARRA money won’t be there for much longer, and uncertainty abounds as Congress considers the debt ceiling and the size of the federal budget.

The current programs help, says Bernheimer, and they remain vital in the current climate. But they won’t be needed forever.

“We see [the loan and the three projects] as a bridge to get us to a point when markets can support projects without subsidies,” he said.

According to a DOE press release, the projects include:

Antelope Valley Solar Ranch: $680 million

The 230-MW project will be located in the Antelope Valley area of the Western Mojave Desert, approximately 80 miles north of Los Angeles. The project is expected to generate 350 construction jobs and will feature a utility-scale deployment of inverters with voltage regulation and monitoring technologies that are new to the U.S. market. DOE and First Solar say the inverters enable the project to provide more stable and continuous power, increasing the efficiency and reliability of large-scale solar power plants greater than 100 MW. Power from the Antelope Valley Solar Ranch 1 project will be sold to Pacific Gas & Electric Company.

Desert Sunlight: $1.88 billion

The 550-MW project is expected to generate 550 jobs during construction and will be located on land managed by the Bureau of Land Management in eastern Riverside County. The Desert Sunlight project is expected to use 8.8 million First Solar modules. Project construction will take place in two phases. Phase I will build 300 MW of PV capacity, which will be sold to Pacific Gas & Electric Company, and Phase II will include 250 MW of capacity to be sold to Southern California Edison. The $1.88 billion in loans that are partially guaranteed by the DOE will be funded by a syndicate of institutional investors and commercial banks led by lead lender and lender-applicant, Goldman Sachs Lending Partners LLC, which submitted the project under the Financial Institution Partnership Program (FIPP), and Citibank N.A. as co-lead arranger.

Topaz Solar: $1.93 billion

The 550-MW project is expected to generate 500 jobs during construction and will be located in eastern San Luis Obispo County. The Topaz Solar project will use more than 8.5 million Cd-Te modules. Power from the project will be sold to Pacific Gas & Electric Company. The $1.93 billion in loans that are partially guaranteed by the DOE will be funded by a syndicate of institutional investors and commercial banks led by lead lender and lender-applicant, The Royal Bank of Scotland plc, which submitted the project under the Financial Institution Partnership Program (FIPP).

4 Comments

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Michael Keenan
Michael Keenan
July 6, 2011
Happen to see the Phoenix dust storm?

http://www.csmonitor.com/USA/Latest-News-Wires/2011/0706/Phoenix-dust-storm-plays-havoc-with-local-power-and-transportation-VIDEO

I bet that dust storms were not included in the EIR for these so-called Solar Farms.

The stimulus money never did reach the home roof top owner here in California under AB811. At the last minute SolarRun lobbied to prevent PACE money from reaching the little guy. What is even more stunning is that the Sierra Club has partnered up with this nevarious monkeywrencher. I am thinking of joining the Club just to get rid of the new way to corporate friendly director.
JD Polk
JD Polk
July 6, 2011
WOW.... WHERE'S THE RESCISSION...

SolarManJD
william cormeny
william cormeny
July 5, 2011
One of the largest solar projects is in San Diego.
This solar power is being used for a long term contract which directly ties the production to a desal plant which is sorely needed by the metropolitan area. Tying the financing to a single use which can be guaranteed for over twenty years makes it a far easier pitch.
This promising connection could be used up and down the coasts of California,Mexico,Peru, all of Africa,and most of Australia.
Hopefully the success of San Diego will lead investors in this direction.
Thomas Reis
Thomas Reis
July 3, 2011
who knows the responsible project managers?
we are two austrian pv guys would like to work at this large scale projects for 2-4 weeks to expand our expierence and to write a masterthesis about these large scale pv projects. please send us the contact of the hr guys of this projects to: t.reis@microsolar.at

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Steve Leone

Steve Leone

Steve Leone has been a journalist for more than 15 years and has worked for news organizations in Rhode Island, Maine, New Hampshire, Virginia and California.
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