Google Back Solar Power…Again
May 15, 2008
This past Wednesday, solar energy company BrightSource Energy announced it has raised $115 million in financing. New investors include Google’s philanthropic arm as well as oil giants BP and Chevron. This is coming only a month after Google announced invest in another solar company, eSolar.
Both eSolar and BrightSource use a technology called solar thermal where a field of mirrors heats a central water boiler. The steam from that water is then used to generate electricity. Unlike wind power and solar power using photovolataic cells, the energy provided by solar thermal is able to remain constant throughout the day making the additional capacity much easier for the grid to handle. The intermittent nature of wind has been a big hindrance to expanding its use, although it does currently have a more commercialised base.
This latest round of funding for BrightSource comes a few months after they inked a deal with Californian utility company PG&E to supply close to 900 MW, making it the biggest deal for solar energy in history. BrightSource hopes to begin construction on a new plant within in the next 12 months in the Mojave desert near the California-Nevada border.
Cost projections show that a 500MW plant costs close to $1 billion so the $115 million just raised, while not insignificant, does not break the bank. However, having some big backers on board with the company will help find future financing as the need arises. As well, it should put the company in a more confident negotiating position when signing deals with utility companies.
Existing investors in BrightSource included Morgan Stanley, and Norwegian oil behemoth StatoilHydro. Astonishing how many of the big oil companies are looking to diversify.
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