Solana: Frequently Asked Questions

What is the project?
APS has partnered with Abengoa Solar to construct and operate one of the world’s largest solar facilities – a 280-megawatt (MW) concentrating solar power (CSP) plant. APS has agreed to purchase 100 percent of the electricity generated at the facility.

What is the plant’s name?
Solana Generating Station. “Solana” is the Spanish word for “sunny place.”

Where will it be built?
Solana will be built 70 miles southwest of Phoenix, near Gila Bend, Ariz.

How many customers will be served?
The Solana Generating Station will generate enough electricity to serve 70,000 APS customers when operating at full capacity. If Solana were operating today, it would be the largest solar power plant in the world, providing more solar electricity per customer than any utility in the United States. Solana will be APS’ largest source of renewable energy.

When will the energy from Solana be available to customers?
APS expects the plant to be fully operational and supplying power to its customers in 2013.

What is the anticipated economic impact of the project?
Abengoa estimates that Solana will bring about $1 billion of investment to the state of Arizona, particularly the Gila Bend area.

How many jobs will Solana create?
The Solana Generating Station will create 1,500 construction jobs and when completed, it will employ 85 highly skilled technicians.

How did APS select Abengoa?
In the spring of 2007, APS issued a Request for Proposal for new sources of renewable energy. After months of reviewing many applications, APS selected Abengoa Solar as its partner. Abengoa was selected because of its technical knowledge, experience and financial ability in developing renewable energy projects. Specifically, Abengoa has deployed solar power technologies across the globe, including large-scale facilities in the U.S., Spain, Algeria and Morocco.

How does concentrating solar power work?
Parabolic mirrors focus solar thermal energy on to a heat transfer fluid. Once heated, the liquid converts water into steam, which turns the plant’s turbines to create electricity, much like a traditional power plant.

How can it produce solar electricity when the sun is not shining?
Large thermos-like buildings containing molten salt will be located next to the steam boilers. At select times, instead of immediately creating steam, the heat transfer fluid will heat the molten salt. Then, if electricity is needed when the sun is not shining, the fluid can be heated by running it through the hot salt instead of through the mirrors. Using this process, electricity can be made from heat energy that was created up to six hours earlier.

What is the difference between concentrating solar and photovoltaic?
CSP uses the sun’s heat to create electricity while photovoltaic uses the sun’s light. CSP technology allows the plant to produce more energy for customers than a traditional solar power plant, which only produces electricity when exposed to direct sunlight. CSP is the most cost-effective solar technology.

What are the next steps in development?
On July 3, 2010 the Department of Energy (DOE) made a conditional commitment for a loan guarantee of $1.45 billion to Abengoa Solar Inc. for the financing, construction and start-up of the Solana Generating Station. However, several important steps still remain before the project can break ground in 2010.

Most importantly, Abengoa must satisfy several conditions set forth by the DOE before the actual loan will be funded. The company must also still arrange tax equity financing. It should be noted that Abengoa must begin construction of the project by the end of 2010 in order to qualify for the Treasury Department's grant-in-lieu of income tax credit (ITC) program.

What other renewable energy is available to APS customers?
APS currently provides its customers with 250 megawatts of renewable energy, enough to power more than 63,000 homes. APS also has plans for at least another 450 megawatts of solar (including Solana) by 2015.

Who do you contact if you are interested in providing a product or service for the construction of Solana?
Abengoa is compiling a database of individuals and companies interested in providing services and products for the construction and operation of Solana. Information is available at solanasolar.com.

Learn more about Solana