Solar power company Ausra has another $40 million in the bank to realize its plan to build solar farms that can generate power day and night. Ausra, which is backed by the dynamic duo of Khosla Ventures and Kleiner, Perkins, Caufield & Byers, is developing solar thermal technology that can be scaled to provide utility-grade power.

The group built a 1 megawatt test plant in New South Wales and will bring a 38 megawatt facility online by 2009. Unlike photo voltaic panels that directly generate electricity from sunlight, Ausra uses mirrors to heat water that drives steam turbines that generate electricity.

The hot water can be stored so that steam can be released when the Sun isn't shining to provide more consistent power generation. This is a major advantage for utilities who need to deliver power to customers at all times of the day.

The Palo Alto company says large scale solar farms using its technology can compete on price today. If Ausra can bring this technology to sun-drenched, emission-concerned and grid-challenged California, utilities would likely jump on board quickly.