October 3, 2011

GREEN FAIL (CONT’D): A U.S.-Backed Geothermal Plant in Nevada Struggles.

In a remote desert spot in northern Nevada, there is a geothermal plant run by a politically connected clean energy start-up that has relied heavily on an Obama administration loan guarantee and is now facing financial turmoil.

The company is Nevada Geothermal Power, which like Solyndra, the now-famous California solar company, is struggling with debt after encountering problems at its only operating plant. After a series of technical missteps that are draining Nevada Geothermal’s cash reserves, its own auditor concluded in a filing released last week that there was “significant doubt about the company’s ability to continue as a going concern.”

It’s as if political connections matter more than having a viable business plan.

UPDATE: Reader Jose Hill writes:

Regarding your comment, “It’s as if political connections matter more than having a viable business plan,” I was reminded of the following, particularly incisive dialogue from Atlas Shrugged:

(James Taggart speaking) “We will liberate our culture from the stranglehold of the profit-chasers. We will build a society dedicated to higher ideals, and we will replace the aristocracy of money by -”

“-the aristocracy of pull,” said a voice behind the group.

Indeed.

Yes. Atlas Shrugged was meant to be a cautionary tale, but for this gang it’s a how-to manual.