A Test to Solar Energy Projects, on Environmental Grounds

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"A storm of lawsuits and is clouding the future of the nascent industry."

solar environmental lawsuit

Just weeks after regulators approved the last of nine multibillion-dollar solar thermal power plants to be built in the Southern California desert, a storm of lawsuits and the resurgence of an older solar technology are clouding the future of the nascent industry.

The litigation, which seeks to block construction of five of the solar thermal projects, underscores the growing risks of building large-scale renewable energy plants in environmentally delicate areas.

At peak output, the five licensed solar thermal projects being challenged would power more than two million homes, create thousands of construction jobs and help the state meet aggressive renewable energy mandates. The projects are backed by California’s biggest utilities, top state officials and the Obama administration.

But conservation, labor and American Indian groups are challenging the projects on environmental grounds. The lawsuits, coupled with a broad plunge in prices for energy from competing power sources, threaten the ability of developers to secure expiring federal loan guarantees and private financing. Only one developer so far, BrightSource Energy, has obtained a loan guarantee and begun construction.

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