California approves Mojave CSP project despite higher cost

Nov. 11, 2011 - Kari Williamson - renewableenergyfocus.com

The California Public Utilities Commission (CPUC) has approved the power purchase agreement between Pacific Gas & Electric (PG&E) and Abengoa Solar affiliate Mojave Solar LLC, for the 250 MW Mojave concentrating solar power (CSP) facility, despite higher costs.

The 250 MW CSP project in San Bernardino County, CA, is expected to come online in July 2014, producing 617 GWh annually.

However, due to the need for transmission network upgrades to accommodate the 25-year PPA, the agreement became more costly than first expected – this could have been the end of the PPA as the CPUC requires utilities to go for the most cost-effective options.

Despite the higher cost, the CPUC decided to approve the CSP agreement, saying that the added renewable energy capacity for PG&E warranted approval.

CPUC President Michael R. Peevey comments: “Mojave Solar is the furthest developed utility-scale solar thermal project that the CPUC has encountered in our capacity of reviewing the utilities' RPS power purchase agreements. The Mojave Solar project is highly viable and the solar thermal facility will enhance the resource diversity of PG&E's energy portfolio.”