Abengoa Solar announced today 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 (MW). Santiago Seage, CEO of Abengoa Solar, stated, “Solana is the first large scale CSP plant for Abengoa Solar in the U.S. and 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. (NYSE:PNW), 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 (DOE), through the Loan Programs Office, 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. 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.
