Another Green Firm Struggles

Nevada Geothermal Power, another recipient of Department of Energy loan guarantees is on the ropes. The New York Times reports that a series of technical missteps have put, as its own auditor concludes “significant doubt about the company’s ability to continue as a going concern.” The Times is quick to point out that unlike Solyndra, NGP does have a cash flow and is producing enough power to repay its loan guarantee. It did, however, receive $66 million in DOE grants which it won't have to repay.

An Energy Department spokesman said he considered the Nevada Geothermal project a success, noting that the company had a long-term contract to sell its power. But to whom? Like many of the solar generating plants that have been proposed or funded NGP by necessity must locate far away from potential customers. Unless subsidized transmission lines are built these power plants are little more than remotely placed white elephants. So here we have the company auditor saying it's on the verge of going out of business while DOE (and the New York Times) thinks it's a success.

Peter Hartley, an economist at Rice University, said renewable energy generally is hindered by the distance from large population centers, and cumbersome regulations that make the permitting of long transmission lines difficult. The collapse of natural gas prices over the last three years due to a boom in shale drilling across the country, he added, “makes the economics of the renewables that much harder to compete.” "Drill baby drill".