Abengoa Solar receives $1.5B loan guarantee
Abengoa Solar has finalized a $1.45 billion federal loan guarantee to keep its large solar power plant near Gila Bend moving forward.
The company announced Tuesday it had completed work on the guarantee, which was issued by the U.S. Department of Energy in July for the 280-megawatt Solana Generating Station concentrated solar power project.
It will sell power generated at the plant to Arizona Public Service Co., a subsidiary of Pinnacle West Capital Corp. (NYSE:PNW).
Kate Maracas, Abengoa's vice president for Arizona operations, said the company has lined up equity partners that will cover cost for the $2 billion power plant, but it is not releasing the names of those partners. The guarantee was designed to make it easier for Abengoa to secure that financing.
Work has begun on the plant, which will produce enough electricity to power about 70,000 homes. The plant is expected to come online in the summer of 2013, now that construction is moving forward and funding has been secured, Maracas said.
"It's really our goal to be able to deliver power for APS' peak season," she said.
Arizona utilities, including APS, typically see customers use the more power during summer months. The company is eager to get the plant, announced in 2008, online and producing power, said Don Robinson, president and chief operating officer for APS.
Read more in the Phoenix Business Journal.
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