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Solar Boondoggle: Taxpayers Fund Costly Plant
2 May
Summary
- Federal taxpayers funded a $2.2 billion solar plant now costing customers more.
- The Ivanpah plant faces shutdown threats due to underperformance and high costs.
- Keeping the plant open risks higher electricity bills for consumers.
The Ivanpah Solar Power Plant, a $2.2 billion facility built with federal stimulus funds, is entangled in a costly dilemma. Both the Trump and Biden administrations, alongside utility company PG&E, have sought to close the plant due to underperformance and high electricity costs compared to newer alternatives.
California regulators, however, have blocked its closure, fearing grid instability and the loss of over $300 million in ratepayer-funded infrastructure. This decision forces a choice: taxpayers may face hundreds of millions in losses on a federal loan if the plant closes, or consumers will continue to bear higher electricity costs.
The plant's concentrated solar power technology, once cutting-edge, has been surpassed by cheaper photovoltaic panels and battery storage. Originally opened in 2014, Ivanpah now operates at a significantly lower capacity factor than anticipated, contributing to its economic challenges.
Critics argue the plant is kept operational for political reasons, passing costs onto consumers. While the facility's operational issues and environmental impact, including bird deaths, have drawn scrutiny, the decision to keep it running highlights the difficulties in managing large, outdated energy infrastructure investments.
