Obama Administration Supporting Major Solar Energy Project in California

The U.S. Energy Department is offering $2.1-billion conditional loan guarantee to support another major solar power project in California. A loan guarantee means the federal government will cover the borrower's debt if the borrower defaults. Such loan guarantees allow the government to share the financial risks of major 'green energy' projects that lack private investment and are not yet supported by the commercial marketplace. The $2.1 billion conditional loan guarantee offered to the Blythe Solar Power Project is the largest amount ever offered to a solar project through the Energy Department's loan office, Secretary Steven Chu said. The concentrating solar thermal power plant includes two units comprising a combined 484-megawatt generating capacity, an eight-mile transmission line and associated infrastructure. The two units are part of a larger project, sponsored by Solar Trust of America, which -- when completed -- will generate 1,000 megawatts of solar power, enough to power 95,000 homes a year. The Department of Energy has issued loan guarantees or offered conditional commitments for loan guarantees totaling $21 billion to support 22 clean energy projects across 14 states...more