A major solar thermal power plant planned for California could be delayed if the US government's economic stimulus package does not provide incentives to unlock financing for renewable energy projects.

BrightSource Energy Inc, which last year signed contracts with California utility PG&E Corp to provide up to 900 megawatts of solar thermal power, still needs to secure financing for the project, which is scheduled to begin delivering power at the end of 2011.

"We should be able to turn dirt over and start construction in the fourth quarter of this year, but big financings don't come in months," chief executive John Woolard reported said recently, according to Reuters. 

"Depending on what happens out of the stimulus bill, it could get pushed back," he said.

US President Barack Obama's proposed $825 billion economic stimulus plan, which offers incentives for renewable projects, will be critical to jumpstarting investment again, Woolard said.

"If you were to wait for private markets to come back completely, you'd be waiting a long time. But if you look at what you can do with the right amount of government support, you could see things happen this year," he said, calling the stimulus package "one of the most important pieces of legislation in renewables, period".

Late last year, BrightSource was reportedly facing a possible regulatory delay and had been attending hearings on how to streamline the approval process. It was shared that the approval process is a bit behind.