Utility-Scale Solar Plants, Including Concentrating Solar Power (CSP), Are Operating, But Costs Are Massive

Governments in many nations, including the U.S. and Spain, have provided massive financial aid to firms that constructed the world’s largest (utility-scale) solar plants—those capable of powering thousands of homes at once. At various times, this aid has included loan guarantees, tax credits and research and development credits. Some of these projects also include methods that enable them to store a portion of their output for future use (energy storage) in giant batteries or other strategies. The business model is based upon selling power at wholesale to utilities that, in turn, distribute the power to end users.

American Clean Power reported that utility scale solar farms had a total capacity of 80 gigawatts in the U.S. as of 2023, or enough to power 18 million homes. Utility scale solar is the third largest source of renewable energy and employs almost 253,000 people in all 50 U.S. states.

Many of the early, immense projects were based on CSP and CSV (as opposed to less complicated solar panels), and frequently turned out to be financially, operationally or environmentally unviable. Critics state that complicated and costly solar projects, such as the $2 billion Ivanpah, are not cost-effective. Spain-based Abengoa, the lead developer of many major renewable projects in the U.S. and elsewhere, filed for bankruptcy in 2016. Tonopah Solar Energy, owner of a major solar plant in Nevada, filed for bankruptcy in August 2020.

However, dramatically falling prices for simple solar panels (similar to those installed on the rooftops of homes) created a comeback for utility-scale, large-capacity solar projects. Solar panels are vastly easier to install and operate than complex systems, even when a large project requires tens of thousands of such panels.

A boom in utility-scale solar panel installations has been underway in recent years and is likely to continue. This is due to multiple factors, including growing demand for renewable energy, declining costs and generous government incentives. Major investors have backed or acquired immense new solar farms, based on solar panel technologies. These investors are encouraged by the fact that utility companies are forced by state legislation to provide a growing percent of their electricity from renewable means. Berkshire Hathaway Energy purchased the 550-megawatt Topaz Solar Farm in California from First Solar. The electricity will be sold under a 25-year contract with PG&E, a major utility firm that is facing a requirement that 33% of California’s electricity come from renewables by 2020.

For 2024, approximately 560 gigawatts of direct current new solar power plants were under planning or development worldwide, according to the U.S. Department of Energy. The first and second quarters of 2024 saw record-setting levels of U.S. battery energy storage installations. The U.S. Energy Information Administration (EIA) projected that America’s utility-scale battery storage capacity would reach 70 gigawatt hours in 2024 and 94 gigawatt hours in 2025.

A boon to operators of large-scale solar facilities is the use of robots to assist with installation and panel cleaning, which are both labor intensive. Alion Energy, a manufacturer in Richmond, California, installed its robotic machines in three projects in California, Saudi Arabia and China. Serbot, a Swiss firm, manufactures robots that clean solar arrays as well glass windows in skyscrapers.

SPOTLIGHT: Community Solar Power Installations

Local solar power sites of modest size are rapidly growing in popularity. In the U.S., this trend is referred to as community solar. Typically, on tracts from 20 to 200 acres, community solar is designed to create enough power to provide much of the needs of a local neighborhood. Several types of ownership and financing are utilized, ranging from ownership by private investors to partnerships between electric utilities and local governments. In many cases, “shares” equal to the cost of one solar panel, are sold to homeowners in the neighborhood. While interest in this concept has been strong, it has historically been growing in the handful of U.S. states with the most supportive laws and incentives. These states include Florida, Massachusetts, New York and Minnesota. Investor interest could wane if generous tax credits become no longer available.

India has announced plans to dramatically increase local production of solar cells. Many of these panels are likely to be installed in massive solar farms to supply India’s power-hungry major cities. India’s Adani Group announced plans, in 2022, to invest $100 billion over ten years in green energy, however these plans must pass government scrutiny and obtain final financing. The goals include construction of one of the world’s largest solar energy plants, in Western India. The company already operates a 640 MW solar farm in India.

Solar Thermal (or “CSP,” Concentrating Solar Power): This technology utilizes solar arrays of curved mirrors that focus sunlight onto solar cells, which concentrates sunlight 500 times. These cells’ efficiency in sunlight conversion can be greater than 38%, compared to the 20% to 25% efficiency for standard solar cells. CSP can also be used to heat fluids to extreme temperatures (up to 750 degrees Fahrenheit), which produce steam that then drives a turbine.

A landmark project in the Mojave Desert in California called Ivanpah opened in early 2014. The $2.2 billion project, built by BrightSource Energy (www.brightsourceenergy.com) and initially owned by Google and NRG, is engineered to have a capacity between 370 megawatts and 392 megawatts, enough to power more than 140,000 homes during peak hours of the day. Ivanpah is comprised of three separate plants built in phases over several years. Unfortunately, Ivanpah has faced a vast number of challenges and problems. It was delayed and had cost overruns due to the need to protect the endangered Desert Tortoise. Later, heat from the plant’s 170,000 mirrors was estimated to be killing 3,500 birds yearly. It also has turned out to be more time-consuming and costly to start up the plant each day (with natural gas used to produce steam at start up).

CSP can be combined with unique power storage technologies. For example, a system of heat storage based on pressurized water or molten salt allows solar heat to be captured during daylight hours, and then used to turn turbines for electric generation during evening hours. CSP can also be combined with traditional natural gas generation at one location. This may be referred to as ISCC (integrated solar combined cycle).

The $2 billion, 280 megawatt “Solana” plant in Arizona can generate electricity up to six hours after the sun goes down. Heat is stored in giant tanks of molten salt. Solana began commercial production in October 2013. Its storage capabilities inspired the California Public Utilities Commission to approve a rule that requires its three investor-owned utilities and other electricity providers to install storage technology by 2024. Due to exorbitant costs, construction of new CSP plants has tapered off worldwide.

SPOTLIGHT: Floating Solar Farms

As large pieces of real estate suitable for solar panel arrays become scarce in certain smaller countries and densely populated areas, a small number of new installations are shifting to floating systems. In the Netherlands, for example, an island comprised of a circle of 180 floating solar panels called Proteus has a total installed capacity of 73 kilowatts of peak power. Proteus was built by SolarisFloat, a Portuguese company. Similar floating farms are in Brazil, Japan and Singapore. Global floating solar capacity reached 1,300-megawatt peak power in 2020, up from 70-megawatt peak power in 2015. Long-term, significant demand for floating solar systems could develop.

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