Global environmental challenges
NTR’s Tessera Solar has sold its 663.5-megawatt Calico solar power project to K Road Power less than a week after utility Southern California Edison canceled a long-standing contract to buy electricity from the power plant that was to be built in the Mojave Desert.
Terms of the sale were not disclosed.
The deal is the latest twist for Calico, which nine weeks ago won approval from California and federal regulators after being put on a fast track so as to qualify for then-expiring tax incentives for renewable energy projects.
Tessera also received the green light for its 709-megawatt Imperial Valley solar power plant but had not secured the financing to build the $4.6 billion pair of projects.
K Road said a subsidiary, K Road Sun, will replace Tessera’s SunCatcher Stirling dish technology with photovoltaic panels for a 750-megawatt phase of the project but will use the solar dishes in a second, 100-megawatt phase.
NTR’s Tessera Solar has suffered a major setback with the loss of a 663.5-megawatt power purchase agreement with utility Southern California Edison for its Calico solar power plant project.
The abrupt cancellation of the five-year-old contract comes just eight weeks after California and federal officials approved Calico, which they put on a fast track so Tessera could qualify for lucrative government incentives for large-scale renewable energy projects.