Lockheed Martin (NYSE: LMT) and Starwood Energy Group Global, LLC (SEG) are teaming to pursue utility-scale solar generation projects in North America.
Lockheed Martin will be primarily responsible for engineering, procurement, manufacturing and systems integration, and SEG will be responsible for arranging long-term power purchase agreements, site selection, permitting, and for providing construction and permanent debt and equity financing.
The Lockheed Martin-Starwood team will initially focus on the utility- scale solar generation needs of California and the Southwest United States, based on initial market assessments.
The two companies estimate they could bring up to 10,000 MW of solar power on line in the next 10 years. At an expected cost of $3 per watt of generating capacity, that would put the market size at $30 billion dollars.
“Significant demand is growing for utility-scale solar generation projects of over 50 megawatts (MW) capacity in the United States,” said Chris Myers, vice president of Business Development at Lockheed Martin’s Maritime Systems and Sensors business. “We believe that Lockheed Martin’s proven capabilities in systems integration, engineering and precision manufacturing will allow us to drive down the costs of these projects, while better assuring the achievement of performance standards and delivery schedules desired by utilities, regulators and other stakeholders.”
Madison Grose, vice chairman of Starwood Energy Group said, “Despite its enormous potential benefits, utility-scale solar generation historically has remained difficult to finance because the industry lacked what we believe are Lockheed Martin’s best strengths — achieving large-scale production while actually lowering costs. Lockheed Martin’s ability to perform on engineering, procurement and construction contracts will make financing available that will help lower the cost of capital, ultimately resulting in more competitive electricity costs.”
About Lockheed Martin
As part of a larger business strategy, Lockheed Martin actively seeks markets that will benefit from core competencies it built in its aerospace and defense work. For example, the Maritime Systems and Sensors business now operates the logistics supply chain for all U.S. military aircraft tires as an outgrowth of its supply chain management expertise developed to support its naval combat system work.
Headquartered in Bethesda, MD, Lockheed Martin employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products, and services.
About Starwood Energy Group Global
Headquartered in Greenwich, CT, Starwood Energy is focused on power generation and transmission project development and ownership, primarily in North America. Starwood Energy currently has interests in three transmission projects in the Northeast, including the recently completed 660MW undersea transmission line across New York Harbor known as “Neptune” that connects the Pennsylvania-Jersey-Maryland (PJM) grid to the Long Island Power Authority (LIPA) grid. It also maintains interests in six power generation projects in California, including five existing simple-cycle, natural gas-fired “peaking” power plants representing approximately 240 MW of total generation capacity and a 120MW “peaking” power facility currently under development for a California utility.
http://www.starwoodenergygroup.com
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