The US’s $2.2 Billion Iconic Solar Power Plant is Shutting Down: But Why?

Metaverse Planet October 9, 2025Last Updated: October 9, 2025

1 minute read

The $2.2 billion Ivanpah Solar Power Facility in California, USA, will be shut down in 2026. The reason cited for the plant’s closure is high costs.

The $2.2 billion Ivanpah Solar Power Facility, located in the US state of California, will be closed in 2026. The facility, which has an iconic appearance with its three 140-meter-tall towers, began operations in 2014. The reason cited for the plant’s closure is high costs.

Unlike the photovoltaic (PV) panel solar power plants commonly used today, Ivanpah operates with Concentrated Solar Power (CSP) technology. The facility’s 173,500 computer-controlled mirrors (heliostats) reflect sunlight onto a receiver atop the towers, where the heated fluid runs a steam turbine to generate electricity. With a capacity of 392 MW, Ivanpah was the world’s largest solar plant when it opened and generated great hopes with its technology.

It Was Planned to Operate Until 2039

However, due to the rapid development of photovoltaic systems and the significant drop in their costs, CSP technology has become economically unviable. PG&E, the main customer and energy company, announced that it terminated its power purchase agreement with Ivanpah at the beginning of 2025. The agreement was actually a long-term contract scheduled to run until 2039, but it was ended early due to the high cost of electricity production. This technology, once considered groundbreaking, is now seen as a product of a past era in the evolution of solar energy.

In addition to its cost, the Ivanpah facility has also been a subject of controversy due to its environmental impact. It is estimated that approximately 6,000 birds die annually due to the intense heat created by the mirrors as they fly between the towers and the mirrors. Furthermore, drivers on Interstate 15 have complained about the bright glare reflected from the mirrors.

An official plan for the future of the land after the facility’s closure has not yet been announced. However, its owner, NRG Energy, is considering the possibility of repurposing the area with cheaper and more efficient photovoltaic systems.