Abengoa set to build Arizona solar plant

Solana CSP Plant delivers dispatchable concentrated solar power with molten salt storage near Gila Bend, Arizona, backed by a DOE loan guarantee and a 30-year PPA with APS, cutting CO2 and creating clean energy jobs.

Abengoa Solar announced that it has finalized $1.45 billion financing to build Solana, the world's largest parabolic trough concentrating solar plant. This plant, with a total investment of around $2 billion, will generate 250 net megawatts.

Santiago Seage, CEO of Abengoa Solar, stated, "Solana is the first large scale CSP plant for Abengoa Solar in the U.S., and, reflecting its plan to build the world's largest plant in the sector, will be a key milestone for our development in this country as it allows us to strengthen our relationships with the local community as well as with the state and federal public authorities that have contributed notably to this project." Abengoa Solar signed a power purchase agreement with Arizona Public Service Co., Arizona's largest electric utility, to buy the energy produced by Solana for a period of 30 years.

Following the Conditional Commitment announced by President Obama last July, the Department of Energy, through the Loan Programs Office, and even as the largest PV installation in North America advances elsewhere, has issued a loan guarantee to support this project.

"I want to recognize the leadership of the Department of Energy's Loan Programs Office in making Solana possible through this loan guarantee. Without DOE's determination and commitment to solar energy this project would have never become a reality," said Seage.

"The plant will be located 70 miles southwest of Phoenix, near Gila Bend, Arizona, where a huge solar plant is in the works today. Solana will produce enough energy to serve 70,000 households and will prevent the emission of 475,000 tons of CO2 per year compared to a natural gas burning power plant. The construction and operation of Solana will bring many economic and environmental benefits to Arizona and will support the nation's goals for energy independence through a "green" economy.

The Solana project is the first large-scale solar plant in the United States capable of storing the energy it generates. Solana will include six hours of molten salt thermal energy storage capability, which will allow energy to be dispatched as needed during cloudy periods and after sunset. With this capability, Solana will be able to generate electricity well into the evening to help meet the summer peak demand for air conditioning.

The plant's construction and operation will produce much-needed tax income for local communities and the state of Arizona, and support the nation's goals for energy independence and, as First Solar's Sarnia PV plant shows, developing a clean energy economy.

Abengoa Solar estimates that the Solana project will create between 1,600 to 1,700 new construction jobs and over 85 permanent jobs. Approximately 98 percent of the jobs created by the project will be American jobs, primarily in Arizona, and peers like Acciona's 50 MW CSP plant underscore continued CSP momentum, in addition to neighboring states. Furthermore, around 75 of the equipment and supplies required to build Solana will be manufactured in the U.S.

Additionally a mirror manufacturing factory will be built in Surprise, Arizona to supply the mirrors needed for the Solana project. The mirror factory will employ almost 180 people, adding to the number of direct jobs created by Solana. This new facility will provide Arizona with the foundation upon which to expand its solar energy technology manufacturing capabilities and to support future CSP projects.

In late 2009 Abengoa Solar signed a power purchase agreement in California to supply electricity generated by a 250 MW net CSP trough plant located in the Mojave Desert, amid a race to build the biggest solar plants across the sector, 100 miles northeast of Los Angeles. The company also has several projects under development in the Southwest.

Abengoa Solar is currently building 930 MW of solar plants worldwide, including the Cerro Dominador CSP plant in Chile, and, with an additional 193 MW already operating, it is the only company worldwide building and operating both trough and power tower CSP plants. The Solana plant will be Abengoa Solar's 14h CSP plant worldwide.

Related News

• Electricity Forum News

• Renewable Energy News