While one of two solar companies in San Benito County took a
step forward, another seems to have hit the proverbial brakes.
While one of two solar companies in San Benito County took a step forward, another seems to have hit the proverbial brakes.
Clearspot Energy and Solargen Energy both have focused on the area for their new endeavors. Clearspot has agreements with the City of Hollister and Hollister School District to provide power at a discount using solar panels. Clearspot recently announced it is close to starting operations at the city’s sewer plant in powering it with panels, while it is going through the permitting process to provide power at the school district as well.
The much larger project undertaken by Solargen Energy in the Panoche Valley, however, isn’t going quite as smoothly. It is concerning that Solargen missed a recent deadline from the California Independent System Operator to reserve a spot in line to eventually hook into the power grid. In failing to pay the necessary $7.54 million to CAISO, Solargen moves to the back of the line in the application process – certainly a less-than-ideal circumstance for the company.
Obviously $7.54 million is no small change. But considering the magnitude of this project – the latest, total cost was estimated at more than $1 billion – Solargen is either having serious trouble raising necessary capital or something else behind the scenes is holding up its progress. Neither scenario can be all that bright, considering it is in Solargen’s best interest to stay toward the front of the line on the power curve, so to speak.
In the short term, it signals a delay in the prospective boost to the economy expected from Solargen’s construction, a time frame for which is now unclear after an expected 2013 construction. As Supervisor Anthony Botelho noted, “The sooner they get stated, the better.”
Solargen pointed out in its latest financial report, the delay will help give Solargen enough time to reach its financial obligation. If the county hopes to see any of the long-touted employment gains during this dreadful economic downturn, the company will have to get its finances in order sooner than later.
