DOE offers conditional commitment offer for a $1.45bn loan guarantee for Abengoa Solar - updated

Facebook
Twitter
LinkedIn
Reddit
Email

The U.S. Department of Energy (DOE) has offered a conditional commitment for a US$1.45 billion loan guarantee to Abengoa Solar. The loan, which was announced by President Obama in his weekly address, will support the construction and start-up of Solana, a 250MW concentrating solar power (CSP) plant in Arizona.

“What the project needs now is for Maricopa County and the state to continue their support and work expeditiously on the last remaining permits needed for construction to begin. After years of watching companies build things and create jobs overseas, it’s good news that we’ve attracted a company to our shores to build a plant and create jobs here in America,” said President Obama.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

DOE’s Title XVII Loan Guarantee program was created to support the deployment of innovative clean energy technologies pursuant to Section 1703 of Title XVII of the Energy Policy Act of 2005 (Title XVII). Title XVII of the Energy Policy Act of 2005 was amended by the American Recovery and Reinvestment Act of 2009 to create Section 1705, a new program for the deployment of renewable energy and electric power transmission projects. Solana is eligible for a loan guarantee under both sections of Title XVII. The plant will be located 70 miles southwest of Phoenix, near Gila Bend, Arizona and will produce enough energy to serve 70,000 households.

Santiago Seage, CEO of Abengoa Solar said, “This conditional guarantee could allow us to start construction of Solana this year. I want to recognize the leadership and effort of the DOE in making Solana possible through this guarantee.”

Abengoa Solar’s Arizona vice president Kate Maracas said, “The building of Solana will also create between 1,600-1,700 new construction jobs, and operation of the plant will add another 85 permanent jobs. These construction and operating jobs will create a few thousand additional indirect jobs. Taken together, 98% of the jobs created by Solana will be American jobs – primarily from Arizona, and a smaller portion from neighboring states.”

Abengoa Solar has signed a power purchase agreement with APS, the state’s largest electric utility, to sell the energy produced by Solana for a period of 30 years.

Update

Obama has also pledged a further US$400m in loan guarantees to Colorado-based Abound Solar, to manufacture advanced solar panels at two new plants, creating more than 2,000 construction jobs and 1,500 permanent jobs. A Colorado plant is already being built and an Indiana plant will be set up in what is now an empty Chrysler factory.

Read Next

May 22, 2025
US energy utility AES has signed two long-term power purchase agreements (PPAs) with technology giant Meta for two solar PV projects in the US states of Texas and Kansas.
May 22, 2025
The New York State Energy and Research Development Authority (NYSERDA) has contracted 2.2GW of solar PV across 18 projects.
May 22, 2025
SMA Solar will begin local assembly of power systems for large-scale solar and energy storage systems in the US.
May 22, 2025
Prefabricated solar structure provider 5B has become the first recipient of the Australian government’s AU$1 billion Solar Sunshot Program, securing up to AU$46 million for its “Maverick” automated solar deployment system.
May 21, 2025
There is potential for cPPAs to deliver the energy transition, according to speakers at the Renewables Procurement and Revenue Summit.
May 21, 2025
US PV module manufacturer Silfab Solar has acquired a patent portfolio for back-contact (BC) solar cells from solar research firm EnPV.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 8, 2025
Asia
Solar Media Events
September 16, 2025
Athens, Greece