NRG Solar, SunPower to set up 250 MW plant in California

(ADPnews) - Dec 1, 2010 - US solar power developers NRG Solar, a unit of utility NRG Energy (NYSE:NRG), and SunPower Corp (NASDAQ:SPWRA) have agreed to jointly build a 250 MW solar park in California, NRG Solar said yesterday.

Under the agreement, NRG will take the ownership and provide the required financing for the California Valley Solar Ranch while SunPower will further develop the project, and design, build and operate the plant.

NRG Solar intends to make a USD-450-million (EUR 345.7m) equity investment in the project in the next four years. The amount depends on the final total project cost and the financing terms.

The plant, located in Obispo county, will produce enough energy to power 100,000 households a year when at full operation. It will deliver all the electricity produced to utility Pacific Gas & Electric under a 25-year power purchase agreement (PPA).

Construction is slated to start in the second half of the next year. A part of the project is expected to become operational by the end of 2011 and the remaining part to start operation in 2012 and 2013.

At present the project is pursuing a loan guarantee from the Loan Guarantee Programme Office of the US Department of Energy. The programme has provided a draft term sheet for the project.

(USD 1.0 = EUR 0.768)

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