The U.S. Energy Department has finalized a $1.2 billion loan guarantee to Mojave Solar LLC to develop a 250-megawatt solar generation project in San Bernardino County that will provide power to PG&E customers.
The Mojave Solar Project will increase the nation’s currently installed concentrating solar power capacity by about 50 percent. Abengoa Solar Inc., the project sponsor, estimates it will fund more than 900 construction and permanent operations jobs. Construction has begun and it is anticipated the project will be completed in 2014.
“Investments in solar generation facilities like the Mojave Solar Project are critical to our effort to create good, clean energy jobs in America and compete with countries like China in the global clean energy race,” Energy Secretary Steven Chu said. “This project will supply local utilities with energy, help drive down the cost of solar power, and fund more than 900 American jobs, all at minimal risk to the taxpayer.”
Abengoa signed a power-purchase agreement with PG&E to buy the energy produced by the project for a period of 25 years. The power purchase agreement is pending approval by the California Public Utilities Commission
The project will produce enough energy to serve more than 54,000 households and will prevent the emission of more than 350,000 metric tons of carbon dioxide per year compared with a natural gas burning power plant.