Explaining Southern California's economy

Solyndra: The government isn't acting like a venture capitalist — it's acting like a super-venture-capitalist!

I nearly spit my coffee out when I saw this brief CNBC segment on whether the government should be acting like a venture capitalist when it comes to startup energy companies — like bankrupt, scandalized Solyndra. Eamon Javers strikes me as a good reporter, but he zipped through the question and gave me the impression that CNBC hasn't fully figured out what the Department of Energy is trying to do in the renewable energy industry

The DOE just approved two new solar-related loan guarantees, of the sort that Solyndra received (Solyndra got $535 million and drew on $527 of it before declaring bankruptcy). Mesquite Solar got $337 million and Tonopah received $737 — both as the DOE's program was officially winding down. 

Both are also doing some fairly out-there stuff. The Tonopah project, according to the DOE, is a "110 megawatt concentrating solar power tower generating facility with molten salt as the primary heat transfer and storage medium. It will be the first of its kind in the United States and the tallest molten salt tower in the world." Here's a picture of what it might look like and a rundown of how it will work.