Wednesday, September 28, 2011

DOE Races Against the Clock: Two Solar Loans Closed, Seven More to Go

DOE Races Against the Clock: Two Solar Loans Closed, Seven More to Go:


The deadline to complete the remaining DOE loan guarantees is 48 hours away from the end of the fiscal year close.



The DOE just finalized a $337 million loan guarantee to Mesquite Solar 1, part of a 700 megawatt photovoltaic project as well as for the Crescent Dunes solar thermal project which includes thermal storage for $737 million.



That's two down but the there are seven more outstanding conditional commitments for solar projects. And two of them (SolarStrong and Topaz), as we've covered, are not going to make it.



Here's the list of projects that are likely leading to some long days and nights at these firms and at the DOE loan guarantee office -- In the free time they have that's not occupied by the Solyndra affair.




Note that this deadline is just for the 1705 program and that projects using newer technologies like CPV or new inverters can take advantage of the 1703 program. This interview with Jonathan Silver of the DOE by the folks at GigaOm does a good job of explaining some of the intricacies of the loan guarantee program.



The two solar projects that have just reached the finish line:



Sempra Generation's massive 700-megawatt Mesquite Solar project, located near Phoenix, Arizona with Zachry Holdings as the EPC and Suntech as the panel supplier for the initial 200-megawatt (DC) phase of the build. The project is located near the Hassayampa 500-kV switchyard, a major transmission hub with access to southwestern U.S. markets. Transmission upgrades and site grading for the entire project have been completed in advance on the flat, privately held land. A 20-year power purchase agreements has been signed with Pacific Gas & Electric (PG&E) for the first phase of the project. When completed in 2013, Mesquite Solar I will be one of the largest photovoltaic solar installations in North America. The project will use "a non-trivial" number of Pluto panels, Suntech's high-efficiency PV panels. Mesquite will use transformer-less and liquid cooled inverter technology from Advanced Energy.



SolarReserve of Santa Monica, California closed a $140 million venture round in 2008 and just closed a $737 million loan guarantee from the DOE for a 110-megawatt molten salt storage power tower with more than 10 hours of thermal energy storage. This will be the tallest molten salt tower in the world, according to the DOE website. The firm licenses the molten salt power tower solar technology from Rocketdyne, a division of Hamilton Sundstrand, a subsidiary of UTC. SolarReserve has a power purchase agreement (PPA) with NV Energy for this project.



According to this chart from the Las Vegas Review Journal the PPA price for the Crescent Dunes project is $0.135 per kilowatt-hour







Will the DOE be able to close the other five projects?



Will Solyndra take a further toll on these lower-risk solar projects?



And will solar thermal projects be financeable in the future absent a loan guarantee?



We'll be able to answer at least two of those questions in the next 48 hours.



***



Here are some detailed stats on the Crescent Dunes project courtesy of Brett Prior at GTM Research:

Project Name: Crescent Dunes

Developer: SolarReserve

Technology: Power Tower

Capacity: 110 megawatts

Location: Tonopah, Nevada

Total Capital Cost: $983 million

Capital Cost: $8.93 per watt

Capacity Factor: 55 percent

Solar Resource: 2685 kWh/m^2/yr

Electricity generation: 480 GWh/yr

Solar-to-Electricity Efficiency: 17%

Acres: 1600 = 15 acres per megawatt

Cooling Method: Hybrid

EPC: UTC Pratt & Whitney

Operator: SolarReserve

Electricity Purchaser: NV Energy

Construction jobs: 600

O&M jobs: 45

# of heliostats/mirrors: 17170

Tower Height: 165 meters

Heat transfer fluid:Molten salt

Inlet Temperature (°C) 288 °C

Outlet Temperature (°C) 566 °C

Temp Difference 278 °C

Storage (hrs) 10

Break ground Oct-11

On line Jul-2013

PPA Date Dec-09

PPA Rate ($/kWh) $0.135/kWh

PPA/Tariff Period (yrs) 25

PPA approved by PUC Y

Land Type Public

Fast-tracked Y

Draft EIS 9/3/10

Record of Decision 12/21/10

Notes Thermal storage efficiency 99%

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