California Utility Ends Deal with World’s Largest Solar Plant Due to Cheaper Alternative
Pacific Gas & Electric (PG&E) has agreed to end its contract with the Ivanpah Solar plant in the Mojave Desert, citing cheaper alternative clean energy sources. The decision marks the end of what was once the world’s largest solar plant, built to reduce greenhouse gas emissions from fossil fuels.
The Ivanpah Solar plant, which opened in 2014, uses a concentrating solar power process to generate electricity. It features 350,000 mirrors that reflect sunlight to a tower, heating water to produce steam and power turbines. However, the plant was unable to compete with photovoltaic solar technology, which uses rooftop solar panels and battery energy storage.
PG&E cited the development of affordable photovoltaic solar technology and battery energy storage as the reason for ending the contract. The utility’s Senior Director of Commercial Procurement, Don Howerton, stated that solar photovoltaic panels and battery energy storage now provide thousands of megawatt hours of clean electricity for PG&E customers.
If regulators approve PG&E’s bid to terminate the contract, Ivanpah will begin closing its units in 2026. The site will then be decommissioned, providing an opportunity for potential repurposing for renewable energy production.
Southern California Edison, which also buys power from the plant, is in talks with the US Energy Department to buy out its Ivanpah contract. The end of the deal is expected to lead to the closure of two of the plant’s three units in 2026.
