Ivanpah, the world’s largest solar power plant located in California’s Mojave Desert, caught fire last Thursday, causing damage to one of the plant’s three towers. This latest engineering setback is the least of the plant’s woes. Prohibitive economic realities are the true problem.
Earlier this year, the California Public Utilities Commission (CPUC) decided to postpone its continued support of the struggling facility, which was touted as the future of solar power when it opened in 2014. But after receiving $1.6 billion in loan guarantees from the Department of Energy (DOE) and $535 million from the U.S. Treasury Department, the facility’s promising future is turning out to be a multi-billion-dollar waste of money.
Ivanpah is unable to meet its intended electricity generation of 940,000 megawatt-hours per year, despite its designation as the largest concentrated solar plant in the world. Pacific Gas & Electric (PG&E) received only 45 percent of the electricity it expected from Ivanpah in 2014 and 68 percent in 2015.
Output is so low, in fact, that it fails to meet Ivanpah’s power purchase agreement, which requires a set amount of electricity production for a certain price.
Ivanpah’s managers found that the facility needs to produce much more steam than initially thought to run efficiently, which requires substantially more natural gas than originally planned to supplement the concentrated solar each morning. Weather predictions underestimated the amount of cloud cover the area receives, which prevents the facility from consistently producing high levels of electricity.