It takes dollar power to get solar power. In these recession-scarred times, it also takes some federal backup power.
The U.S. Department of Energy is stepping in for the second time to provide a crucial loan guarantee for an Arizona solar-power plant.
The Agua Caliente Solar Project in Yuma County is in line for a $967 million loan guarantee. The Solana plant in Gila Bend was earlier offered a $1.45 billion guarantee.These aren't loans or grants. They simply remove a barrier that kept gun-shy lenders from putting money into huge energy projects. Taxpayers would assume the tiny risk of default on two plants that have built-in markets: The Yuma plant will supply Pacific Gas & Electric, which serves Californians, and Solana will supply Arizona Public Service.
Arizona will benefit from a boost in employment, mostly in short-term construction jobs but also some in operations and maintenance. And a new factory will make solar mirrors for the Solana plant. The federal loan guarantees are critical for the supply side of Arizona's solar industry.
But it's just half of the equation. Our state's renewable-energy standard, adopted by the Arizona Corporation Commission, requires regulated utilities to produce 15 percent of their power from renewable sources by 2025.
That's the demand side. For bright prospects in solar, Arizona must have a steady, predictable increase in local demand.
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