Renewable energy developer K Road Power has abandoned plans to build 294MW solar power plant in southern California, US, citing difficult market conditions.

In a letter to California Energy Commission, the developer has withdrawn the license for the first phase of 850MW Calico project it acquired earlier in 2010.

"Due to changed market conditions, we will not be able to move this project forward, either as licensed or as proposed to be amended," the company added in the letter.

K Road Power had acquired the project from Tessera Solar in December 2010 after which it sought for a right-of-way grant amendment from the Bureau of Land Management (BLM).

According to BLM, the project was estimated to have power capacity to cater to electricity requirements of 200,000 homes.

Earlier in April 2011, the California Supreme Court had overruled The Sierra Club, saying that the CEC has approved the project without proper assessment overlooking the looming impact on wildlife.

It was then followed by BNSF’s challenge to the approval citing potential glare from the solar panels.