DOE Guarantees Loan For Phoenix Solar-Power Project
The US Energy Department provided a conditional commitment to lend the amount of $359 million for the solar-power project on the west of Phoenix that is aimed to sell power to the utility in Northern Carolina. It will be the third loan guarantee received from the Department of Energy for major solar projects in the state of Arizona, if granted.
Scott Crider, the spokesman for the San Diego-based Sempra Generation, stated that the total price of $500 wouldn’t be covered by the loan guarantee. The project will require nearly 300 people for building it and 7-10 people to operate it once it is completed.
The Plant Construction
The capacity of the first phase will comprise 150 megawatts. It is actually enough electricity to supply power for 37,500 homes at once while the sun is shining. The construction is expected to be started on the project this month. The plant will use the solar panels from Chinese Suntech Power Holding Co.
The DOE announced in January an installment loan of $967 million for NRG Solar to build up a plant called Agua Caliente in Yuma County that is also aimed to supply Pacific Gas and Electric.
The funds for the loans would be received from the Federal Financing Bank, a federal corporation that was founded in 1973 to reduce the cost of federally assisted borrowing. The DOE would guarantee the loans in case of default.
