NRG Energy to acquire SunPower solar farm for $450 million
A subsidiary of NRG Energy on Tuesday said it will invest up to $450 million in a 250-megawatt photovoltaic power plant to be built by Silicon Valley‚Äôs SunPower on the central California coast.
The New Jersey-based power provider, which operates a fleet of fossil fuel and nuclear plants, has emerged as significant investor in solar projects.
In October, NRG agreed to invest $300 million in BrightSource Energy‚Äôs 370-megawatt Ivanpah solar thermal power plant now under construction in the Mojave Desert in Southern California. The company has also struck a partnership with eSolar, a Pasadena, Calif., startup, to build solar power plants in the desert Southwest. And NRG owns a 20-megawatt photovoltaic farm in Blythe, Calif., and has other solar projects under development in Arizona, California and New Mexico.
In the deal with SunPower, NRG Solar will take ownership of the California Valley Solar Ranch in San Luis Obispo County and responsibility for financing the project. SunPower said on Tuesday that it is seeking a federal loan guarantee to build the solar farm and has received a draft term sheet from the United States Department of Energy.
SunPower, a solar power plant developer and one of the U.S.‚Äô largest manufacturers of photovoltaic modules, will build and operate the San Luis Obispo project. The company, based in San Jose, Calif., has a 25-year contract to sell the electricity generated by California Valley Solar Ranch to utility PG&E. Construction is set to begin next year and when the project is completed in 2013 it will produce enough electricity to power about 100,000 homes, according to the company.
‚ÄúCalifornia Valley Solar Ranch will be an important component of our multi-technology portfolio of clean, zero-emission solar power facilities,” Tom Doyle, NRG Solar‚Äôs chief executive who formerly served as an executive at BrightSource Energy, said in a statement. ‚ÄúWe are pursuing large-scale photovoltaic projects across the Southwest and working with like-minded companies that can ensure our projects will be exceptionally successful,‚ÄĚ
(Image courtesy of SunPower.)