BIG SUN VERSUS THE CLOCK

Government funding for solar energy: US applicants in a race against time; The US federal grant deadline is fast approaching, yet concentrating solar power developers have yet to break ground on a single project. Will CSP developers be shovel-ready by December 31?
John Johnson and Rikki Stancich, 28 October 2010 (CSP Today)

"…One of the conditions for the U.S. Department of Energy grants [for solar power plants and other projects] is that developers must break ground on projects by the end of the year in order to qualify for the lucrative federal assistance…That means that permitting and financing must be in place soon…[D]evelopers must [also] continue to work on the projects non-stop once they break ground, or risk losing funding…[They] have until 2016 to finish the projects…

"There are two ways to meet the U.S. government’s requirement for funding – a condition called “conducting physical work of a significant nature,” which is the breaking ground approach, or the “5 percent safe harbor,” which requires developers to commit 5 percent of the capital for the project up front…Most developers [are expected to] go the former route…[T]he majority of large projects that are well into their planning and permitting phase are capable of breaking ground this year."

It takes time and money to transform deserts into... (click to enlarge)

"BrightSource Energy, Inc., is the first to have done so. Having secured all the necessary permits to commence construction, the project broke ground on its Ivanpah Solar Electric Generating System in the final week of October…Solar Trust of America's Blythe Solar Power Project in Riverside, California also received permitting in the last week of October. However, with only 8 weeks to go, others are still awaiting final permitting approvals.

"Next to permitting, the biggest challenge for most developers is to secure the financing to begin serious construction work beyond site prep, such as purchasing equipment, deployment of equipment and making sure heavy construction equipment is secured and ready to go…[A] difference between the tens of millions…[for site preparation] and the billions [needed] to build a full project…Again, BrightSource Energy leads the way…[T]o develop the Ivanpah project…NRG will invest up to US$300 million…"

...solar power plants. (click to enlarge)

"…There have been rumors swirling through the industry that the DOE may extend the end of the year shovel-in-ground deadline…[T]he DOE has made no commitment…[W]hile an extension is not out of the question, most developers are not counting on it…

"With an extension unlikely, Solar Trust of America is busy working out procurement details, getting equipment into place and finalizing logistics in order to break ground as soon as possible once it receives final permitting and financing…[Their] Blythe project gained approval in 10 months, instead of the three years that is typical of such large projects."