DoE makes major solar investment

Technically it’s a loan guarantee rather than a true investment, but this Department of Energy move shows just how serious the Obama administration is concerning alternate energy sources. There are a lot of exciting developments in solar power right now and government money in this amount only helps grease the wheels of innovation and private-sector investment.

From the first link:

The U.S. Department of Energy has announced a $1.37 billion conditional loan guarantee for the Ivanhoe Solar Complex in the Mojave Desert. The project, managed by Brightsource Energy, will use mirrors to concentrate sunlight, creating high temperatures that can be used to generate electricity. The complex will include three power plants that together will produce about 400 megawatts of electricity.

Basically, the guarantees would cover the loans in the case of default. The money for the loans is expected to come from the Federal Financing Bank.

One of the biggest challenges that large solar developments face is getting financing, particularly because few such solar power plants have been built. The DOE guarantees help on this front.