A Rare Peek at Green Energy Economics

California regulators have approved contracts for more than 8,600 megawatts of renewable energy, to be generated mostly by big solar power plants for the state

When approving contracts for 310 megawatts of solar electricity, the utilities commission also signed off on an apparently first-of-its-kind technology royalty agreement between BrightSource and PG&E.

Under the contracts approved Thursday, BrightSource will generate electricity from two of seven solar thermal power plants the company is building in the Mojave Desert, to supply PG&E with a total of 1,310 megawatts. In an unusual twist, the utility has agreed to pay BrightSource a higher electricity rate if the start-up fails to secure a Department of Energy loan guarantee to help finance the construction of the two power plants.

NY Times