NRG Solar, a subsidiary of NRG Energy, Inc. (NYSE: NRG), and SunPower Corp. (Nasdaq:SPWRA) today announced agreements to begin construction next year of the 250-megawatt (MW) California Valley Solar Ranch in San Luis Obispo County.
Sunpower has been developing the project for two years, and NRG will invest up to $450 million over the next four years to assume ownership of the power plant.
SunPower will continue to develop the project, and will design, build, operate and maintain the solar power plant. Construction is expected to start in the second half of 2011, with a portion of the project expected to begin operating by the end of 2011 and the balance coming on line in 2012 and 2013.
The power plant is expected to create approximately 350 solar jobs during construction, will power about 100,000 homes and will be one of the largest photovoltaic solar power plants in the world, when complete.
The project is currently seeking a loan guarantee from the U.S. Department of Energy’s (DOE) Loan Guarantee Program Office, which supports accelerated commercial use of innovative energy technologies to help sustain economic growth, yield environmental benefits, and produce a more stable and secure energy supply. The DOE Loan Guarantee Program Office has provided a draft term sheet for the California Valley Solar Ranch project, which is a significant milestone in the process leading to a conditional loan guarantee commitment.
"For two years, SunPower has been working to develop this project responsibly, with respect for the environment and the community," said Howard Wenger, president of the utility and power plants business group at SunPower." We are delighted to have found in NRG a partner that shares our vision to build a solar power plant in San Luis Obispo County that enhances the local economy, protects local habitat and generates emission-free solar power for California."
California Valley Solar Ranch has executed 25-year power purchase agreements with Pacific Gas & Electric (NYSE: PCG) for delivery of 250 MW. The power purchase agreements have been approved by the California Public Utilities Commission. The closing of the NRG and SunPower agreements announced today is subject to the satisfaction of customary closing conditions and the completion of development, including obtaining required permitting and regulatory approvals.
This is NRG’s second major California solar investment in just over a month. The company said in October it will invest $300 million in BrightSource Energy’s Ivanpah solar thermal project.
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