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Don't Miss The Great Solar Debate: Where Does the Global Solar Industry Stand? Click Here to Register! ×

Developer of 1,000-MW Blythe Solar Project Files for Chapter 11

Steve Leone, Associate Editor, RenewableEnergyWorld.com
April 02, 2012  |  4 Comments

Hours after solar cell manufacturer Q-Cells announced it was filing for bankruptcy, the solar industry received another helping of bad news.

This time, it was Solar Trust of America, a 70-percent owned subsidiary of Germany’s already-bankrupt Solar Millennium, that announced it would be seeking court protection. For the American solar industry, that means that the 1,000-megawatt Blythe Solar Power Project in Blythe, Calif., is in even deeper trouble as it struggles to get off the ground.

Originally conceived as a concentrating solar power (CSP) development of unrivaled scale, the Blythe project showed signs of sputtering in August when it announced that the first 500 MW would switch to photovoltaics because the steep drop in panel prices had made PV far easier of an investment.

According to published reports, Solar Trust of America listed in its bankruptcy filing assets of $1 million to $10 million, and liabilities between $10 million and $50 million.

The question now is will anyone step in to take over what was billed as the world’s largest solar project. In an interview with Reuters News Service, Blythe City Manager David Lane sounded optimistic.

"We have been working with Solar Trust of America for a couple of years in getting this project going," he said. "Although the project is not in the city limits, we are the only city within 100 miles. My sense is that with the large investment in what was to have been the world's largest solar power plant, someone somewhere will buy it and build it.”

According to the company’s website, Solar Trust of America has 2,000 MW of projects in advanced stages of permitting in California and Nevada.

4 Comments

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John Chase
John Chase
April 5, 2012
I really hate to mention it, but perhaps the Chinese? It is more important to deploy renewables that to quibble over who gets the credit... and the profit.
Richard Mignogna
Richard Mignogna
April 4, 2012
It still seems remarkable to me that in an era of diminishing incentives and continued weak electricity demand growth due to a struggling economy that the notion of building mega scale plants simply to capitalize on presumed economies of scale survives. When you haven't done something before, wouldn't it be wiser to start small, stay within your resources, and scale up as you gain experience and as funds allow?
F SC
F SC
April 3, 2012
"According to the company's website, Solar Trust of America has 2,000 MW of projects in advanced stages of permitting in California and Nevada."

This sounds like a huge stretch. One to ten million in assets and eight to twelve billion in development will get you in trouble if the wind changes even by just a little. In a new industry, the wind does not change by just a little.
Rich Evans
Rich Evans
April 2, 2012
Anyone from utility services interested in taking up this project?

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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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