Goldman Sachs, Google and Chevron are betting on solar power to become a cheaper energy source than coal by 2020. The three corporate giants are investing in a 1000 acre solar power facility in southern California’s Mojave Desert that will provide enough energy to power 112,500 homes at full capacity. The facility will run off of the solar thermal power system with 550,000 carefully positioned mirrors boiling water into steam which will turn turbines to generate electricity. JP Morgan Chase and Wells Fargo invested in the facility, with Google and Chevron funding research and Goldman Sachs seeking land to lease for the fast growing project.

The costs for the technology will fall below those of coal by the year 2020 according to US Government estimates given the increasing demand for energy and rising natural prices and emissions limits. A US Department of Energy report says solar thermal electricity prices could fall below 3.5 cents per kilowatt hour within 12 years under the right conditions. However significant obstacles still remain including the development of better energy storage and transmission capability and continued government support of the technology through tax credit and research and development funding.

You can by learning more about the Solar Energy Industries Association (SEIA), a non-profit industry group which lobbies for better public policy for solar energy.

LINKS:

Bloomberg: Google, Chevron build mirrors in the desert to beat coal with solar

Deseret News: Google, Chevron aim to beat coal with solar

Deccan Herald: Google, Chevron build solar mirrors in desert to to power 112,500 homes