Abengoa Solar has mentioned that the company's planned 280 megawatt solar thermal project in Arizona and an accompanying mirror factory are on hold.

Fred Morse, a senior advisor for US applications for the Spanish solar power plant builder, referred to the status of the company's plans.

"We have serious issues getting debt," Morse said, according to Baltimore Business Journal. "The banks right now do not have any and what will be available in the near future will come at a higher price which will rise the terms" of Abengoa's projects.

Morse said he is confident the company will find financing. 

This project is the result of the contract which Abengoa Solar has signed with Arizona Public Service (APS) to build and operate what will be the largest solar power plant in the world. The plant will be installed about 100 kilometers southwest of Phoenix, near Gila Bend. Solana, with 280 MWe of power output capacity, is based on parabolic trough technology and thermal storage using molten salts.

Abengoa would build, own and operate the plant, and APS has a contract to buy all its power.

"Obviously, no construction will start until they receive financing," Don Robinson, senior vice president of planning for APS, said according to AP. 

APS Renewable Energy Director Pat Dinkel said the troubles obtaining financing for the plant highlight the need for the Arizona Corporation Commission to approve a rate increase sought by APS. The company is asking to raise household bills by 9.4 percent, or about $11 a month.

"When you get a loan, they want to see your paycheck," Dinkel said. "When Abengoa gets financing, (the lenders) want to know their payback, their ability to get paid, comes from a reputable company. If not, there will be a huge premium if they provide financing at all."