NRG Solar and SunPower Corporation finalized agreements to develop the 250-megawatt California Valley Solar Ranch in San Luis Obispo County, California, which is slated to be one of the largest photovoltaic solar power plants in the world.
NRG Solar, a subsidiary of NRG Energy Inc. (NYSE:INRG), agreed to shoulder the financing responsibilities, with plans to invest up to $450 million of equity in the project over the next four years. NRG Solar will then hold complete ownership of the facility.
SunPower (Nasdaq:SPWRA,SPWRB), on the other hand, will design, construct, manage and maintain the solar generating facility. The company must also continue to develop the project even after its completion.
The facility will use solar photovoltaic panels and high-efficiency solar tracking technology to harness solar radiation in the California Valley. The trackers will allow panels to follow the sun’s trajectory across the sky throughout the day, thus increasing sunlight capture by up to 25 percent compared with conventional fixed systems.
Construction of the solar ranch will begin in the second half of 2011. A portion of the facility will start operations by the end of 2011, and the second and third phases will come online in 2012 and 2013, respectively.
Once complete, the plant will generate enough electricity to meet the power demands of about 100,000 homes – almost all of San Luis Obispo County. It will also help California meet its renewable energy target of 33 percent by 2020.
Pacific Gas and Electric Company (NYSE:
PCG
) will purchase all of the power generated by the project under a 25-year power purchase agreement.
The project is currently seeking a loan guarantee from the United States Department of Energy’s Loan Guarantee Program, which provides financial support to new innovations to accelerate the commercialization of advanced technologies.
«This partnership with NRG Solar and the D.O.E. represents a major milestone in delivering 250 MW of clean, renewable solar power to California’s electricity customers,» said Howard Wenger, president of the utility and power plants business group at SunPower.
“The D.O.E. is playing a critical leadership role in supporting renewable energy that provides economic and environmental benefits, as well as a secure, stable energy supply in the U.S.,» he added.
