Abengoa said it will propose adding large-scale molten-salt storage capability to a power-tower generator at Palen, which looked to have hit the rocks after being knocked back by the California Energy Commission (CEC).

The CEC had earlier ordered that the original 500MW project be scaled back from two towers to one, placing a huge question mark over the viability of the entire development.

Abengoa – which did not reveal the terms of its agreement with its erstwhile partner BrightSource – said it now plans to “bring forward a project that will better meet the needs of the market and energy consumers”.

It