NRG Energy could end up controlling 60 percent of the? 392-megawatt Ivanpah solar project in California’s Mojave Desert.
In a conference call this morning NRG Energy CEO David Crane said his company’s $300 million equity investment in BrightSource’s Ivanpah facility will anchor it as the project’s lead owner. Depending on the project’s final costs, NRG could end up controlling anywhere? between 40 percent and up to 60 percent of the power plant, Crane said.
BrightSource CEO John Woolard says he is targeting a financing package with a? 75 : 25 percent debt to equity ratio. The conditional $1.37 billion Department of Energy loan guarantee would fund the debt portion. Once Ivanpah starts operating? BrightSource plans to tap a $500 to $600 million 1603 cash-grant to pay down a portion of the project debt, says Woolard. The facility is scheduled to go live in 2013.
Woolard says the DOE loan guarantee is critical? as he doubts commercial banks, more than two years after the financial implosion,? have the appetite to support a? billion dollar project like Ivanpah.