San Diego Gas & Electric–a utility owned by Sempra Energy (NYSE: SRE)–has signed a 20-year power-purchase agreement (PPA) with an LS Power subsidiary to procure up to 130 megawatts (MW) of solar energy from the proposed Centinela Solar Energy facility in the Imperial Valley.
Upon completion in 2014, the new Centinela Solar Energy facility will send up to 130 MW of solar power to SDG&E’s service territory across the Sunrise Powerlink, a 120-mile, 500-kilovolt electric transmission line which was designed to tap into the renewable resources of the Imperial Valley. When completed in 2012, the new power line is expected to carry up to 1,000 MW of electricity.
The Centinela Solar Energy facility will employ photovoltaic technology on a 1,150-acre site near Calexico, Calif., an area that is ideal for producing solar power due to abundant desert sunlight.
In addition to producing clean electricity, the solar project represents a $500-million economic investment in Imperial County and will create hundreds of construction and solar jobs.
The up to 130 MW contract is one of several agreements with Imperial Valley renewable energy developers for delivery of power to customers over the Sunrise Powerlink.
Under the new contract, which runs through 2033, the photovoltaic facility will produce enough "green" power for approximately 45,000 households. The contract requires approval from the California Public Utilities Commission.
The project will help SDG&E meet California’s mandate to procure 20% of its power from renewable resources by 2010 and the company’s voluntary commitment of 33% by 2020.
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