Remember Solyndra, the solar energy company with Democratic Party connections that sucked up some half a billion dollars worth of green energy loans before going belly up?
If you liked Solyndra, you’re gonna love the Crescent Dunes solar plant near Tonopah, Nevada. Thanks to the efforts of Obama energy secretary Steven Chu and then-majority leader Harry Reid, it sucked up $737 million in federal loan guarantees.
Tiny problem: It was obsolete before it ever came online:
Ten thousand mirrors form a spiral almost 2 miles wide that winds around a skyscraper rising above the desert between Las Vegas and Reno. The operation soaks up enough heat from the sun’s rays to spin steam turbines and store energy in the form of molten salt.
In 2011 the $1 billion project was to be the biggest solar plant of its kind, and it looked like the future of renewable power. Citigroup Inc. and other financiers invested $140 million with its developer, SolarReserve Inc. Steven Chu, the U.S. Department of Energy secretary at the time, offered the company government loan guarantees, and Harry Reid, then the Senate majority leader and senior senator from Nevada, cleared the way for the company to build on public land. At a Washington celebration of SolarReserve’s public funding, Chief Executive Officer Kevin Smith told the assembled politicians, “We’re proud to be doing our part to win the future.”
SolarReserve may have done its part, but today the company doesn’t rank among the winners. Instead, it’s mired in litigation and accusations of mismanagement at Crescent Dunes, where taxpayers remain on the hook for $737 million in loan guarantees. Late last year, Crescent Dunes lost its only customer, NV Energy Inc., which cited the plant’s lack of reliability. It’s a victim, ironically, of the solar industry’s success over the past decade. The steam generators at Crescent Dunes require custom parts and a staff of dozens to keep things humming and to conduct regular maintenance. By the time the plant opened in 2015, the increased efficiency of cheap solar panels had already surpassed its technology, and today it’s obsolete—the latest panels can pump out power at a fraction of the cost for decades with just an occasional hosing-down.
“Green energy” subsidies aren’t carefully evaluated projects designed to advance technology, they exit to transfer money from the pockets of taxpayers to the pockets of those tied into what Ayn Rand called “The Aristocracy of Pull.” This is why government should stay out of the business of picking winners and losers.
Are SolarReserve Inc. executives connected to the Democratic Party? And how!
Chairman Lee Bailey donated tons of money to Democrats, including Hillary Clinton, Barack Obama, John Kerry, Chuck Schumer, Barbara Boxer and (naturally) Harry Reid.
CEO Tom Georgis has only sent money to two candidates: Barack Obama and Harry Reid.
Board member James McDermott? Barack Obama, Harry Reid, Barbara Boxer, John Kerry, Elizabeth Warren, Kirsten Gillibrand and Bart Stupak (remember him?).
Yes, it’s a great mystery how SolarReserve Inc. got all those federal subsidies…