Investors are betting

that large-scale solar from companies like Ausra are the most cost-competitive. Ausra, is testing a system to generate power at centralized stations. These solar parks use concentrating solar power to create steam that turns a turbine to make electricity. If constructed on a large enough scale,these solar thermal plants are already cost-effective when compared with fossil-fuel power generation, according to advocates of the approach. Such advocates include Vinod Khosla, founder of Khosla Ventures and Ausra investor and board member. “Ausra’s technology replaces smoke with mirrors by eliminating fuel use for power generation, and sets a new benchmark for the cost and scale of solar power."

Ausra has hit on the grail of solar energy systems - "thermal storage." In addition to generating steam from its array of special metal tubes, Ausra stores hot water that a power plant can draw on during times when the sun is not shining. That thermal storage is key to competing on price even at peak demand times, said Robert Morgan, the chief development officer of Ausra. Right now Ausra is testing systems in Australia and expects prices of electricity to set at $.10 per kilowatt hour for plants between 100 and 200 megawatts. For plants between 100 and 500 mw, the cost goes down to 8 cents kwh.

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