Ivanpah solar plant faces clash over staying open despite high power costs
Updated
Updated · Fox News · May 2
Ivanpah solar plant faces clash over staying open despite high power costs
1 articles · Updated · Fox News · May 2
The $2.2 billion California facility near the Nevada border still owes $730 million to $780 million on a $1.6 billion federal loan, while a Treasury grant added $539 million.
PG&E and both Trump and Biden administrations have backed closure, but California regulators blocked it, citing grid reliability, rising demand and more than $300 million in ratepayer-funded infrastructure.
Opened in 2014, Ivanpah's solar-thermal technology has been overtaken by cheaper photovoltaic solar and batteries; analysts say customers may pay about $100 million more annually to keep it running.
Is California forcing ratepayers to fund a 'boondoggle' solar plant just to power the state's massive new data centers?
With taxpayers on the hook for millions, how do we avoid funding the next obsolete green energy project?
Can a solar plant that kills thousands of birds annually truly be considered 'clean energy' in the fight for grid stability?
Ivanpah Solar Plant’s High Costs and Technological Limits Trigger Regulatory Clash Over 2026 Closure
Overview
In early 2026, PG&E sought to shut down two units of the Ivanpah Solar Electric Generating System due to high electricity costs and outdated solar thermal technology. This move was supported by the U.S. Department of Energy aiming to modernize the grid and reduce costs. However, the California Public Utilities Commission rejected the shutdown to maintain grid reliability amid rising electricity demand driven by AI data centers, electrification, and hydrogen production. Ivanpah's lack of thermal energy storage limited its operation to daylight hours, making it less competitive against cheaper solar PV paired with battery storage. The site is now considered for repurposing to modern solar PV with storage, balancing economic and reliability needs in California's clean energy transition.