Obama Announces Nearly $2 billion for Solar Power
The money is part of loan guarantees administered by the Department of Energy.
Kevin Bullis 07/06/2010
- 11 Comments
Over the weekend, President Obama announced two massive loan guarantees meant to promote solar power manufacturing in the United States. The guarantees will make it easier for the projects to raise financing.
One project, which involves a guarantee for a $400 million loan, is for the start-up Abound Solar Manufacturing, based in Loveland, CO, which has developed a new method for manufacturing cadmium telluride solar panels, the most successful type of "thin-film" solar panel on the market today. (Last year First Solar, a cadmium telluride solar manufacturer, produced more watts of solar panels than any other solar company.) The money is for two factories, one in Colorado and another in Indiana.
The second guarantee, for a $1.45 billion loan, is for the Spanish company Abengoa to build a large 250 megawatt solar power plant that will use parabolic mirrors to concentrate heat from the sun, which will then be used to make steam and drive turbines. The press release accompanying the announcement takes pains to note that the project will create manufacturing jobs in the United States, not just in Spain. It says that "over 70 percent of the components and products" will be made in the United States. Building the plant will employ 1,600 workers in Arizona, and drive the construction of a new mirror manufacturing plant near Phoenix, but the finished power plant will only provide 80 permanent jobs.



aunderdown
77 Comments
Band-aid measures?
I am skeptical as to whether this type of government intervention will make any long-term contribution towards the goal of providing good jobs in the U.S. economy. As former Intel CEO Andy Grove discusses in the most recent issue of Business Week magazine (”How to Make an American Job Before It’s Too Late”), the PV industry was invented in the U.S. but China now dominates global manufacturing of PV panels. He points out that this same situation has occurred in other high value-added industries, such as consumer electronics. Solar is now an “attractive” industry, so it’s receiving this type of government financial support. But the underlying problems that cause industry after industry to migrate offshore are not unique to solar or other “green” industries, and won’t be solved by providing loan guarantees to individual companies. There are more systemic issues that must be dealt with, such as the disparities in labor costs, corporate tax rates, regulatory burdens.
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Bob Wallace
71 Comments
Building future US jobs...
""over 70 percent of the components and products" will be made in the United States. Building the plant will employ 1,600 workers in Arizona, and drive the construction of a new mirror manufacturing plant near Phoenix, but the finished power plant will only provide 80 permanent jobs."
After this plant is made those 1,600 jobs will move to the next CSP installation and then to the next. And we won't build only one plant at a time, but multiple plants.
The factories built to create the 70% American made parts will continue to make parts for those future CSP sites.
Each CSP installation will create 80 permanent jobs.
All that's a good thing, isn't it?
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