U.S Department of Energy is providing $737 million as a loan guarantee to the construction of a commercial solar power plant located nearby Tonopah. This is what the Senate Majority Leader Harry Reid communicated the last week.
The CEO of SolarResever said that the project will generate 4,000 jobs in total, including both indirect and direct jobs in the country; For the supply of parts for the facility and other permanent jobs for the 110-megawatt Crescent Dunes Solar Energy Project.
There will be 50 employees working on the site, and it is expected that the facility will generate $40 million in typical tax revenue during the first 10 years of operation.
U.S department of Energy provided this conditional guarantee under the American Recovery and Reinvestment Act of 2009. The project was rescued through the scheme under the condition that the project was launched before the end of September. The scheme is to be cut down after the 30th of September 2011.
SolarReserve which is based in Los-Angeles has a 25-year purchase agreement with NV Energy since 2009, which assures that they buy energy from the plant. This is expected to be implemented in July or August.
NV Energy has confirmed that they are willing to pay 13.5 cent per KWh for the energy that is produced in the Tonopah plant.
It is quite a comfortable rate; it is more than three times the amount that the company pays for wholesale power, which is primarily generated from natural-gas.
According to Secretary Chu, the Crescent Dunes will probably be able to generate 500,000 MW per annum. This will be enough to supply electricity to 32,000 households.
This is a very large project but most people don’t realize that.
In the Crescent Dunes mirror focus will be used to direct the rays of the sun to a 640-foot-tall solar tower. Thereafter molten salt will be used to store the energy. This will enable the solar power to provide solar energy even during the night.
Source: las Vegas Review Journal