New Jersey-based power plant owner NRG Energy, Inc. (NYSE: NRG) has ventured into solar energy for the first time, signing an agreement with solar thermal startup eSolar for up to 500 megawatts (MW) of power production in Southern California and the Southwest.
NRG will invest approximately $10 million for equity and associated development rights to develop, build, own and operate 11 eSolar modular solar generating units at three sites.
NRG will use eSolar’s concentrating solar power (CSP) technology to produce and sell renewable electricity under power purchase agreements (PPAs) with local utilities.
The first plant is anticipated to begin producing electricity as early as 2011.
eSolar is currently completing its first commercial demonstration CSP plant in Southern California. eSolar has attracted investments from Idealab, Google.org and Oak Investment Partners among others.
“eSolar’s breakthrough modular power plants use more software and less steel to allow solar energy to be competitive with fossil fuels for the first time ever,” said Bill Gross, CEO of eSolar. “NRG Energy’s extensive project skills and focus on advancing a diverse portfolio of energy generation technology will help accelerate the deployment of eSolar’s CSP technology in locations across the US.”
In a letter to shareholders, NRG Chief Executive David Crane said the deal marked "a meaningful step forward in NRG’s efforts to be a leader in solar development in the United States."
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