Dec 20 2010
NRG Energy and First Solar have declared that NRG Energy will buy First Solar’s Agua Caliente solar project through its fully owned auxiliary, NRG Solar.
The 290 MW solar power project is expected to be finished by 2014 and has contracted a power purchase agreement (PPA) for a period of 25 years with Pacific Gas and Electric Company. On completion, the Agua Caliente project will remain the mammoth functioning solar photovoltaic power production site in the world.
The Agua Caliente solar power project placed over 2,400 acres of land located between Yuma and Phoenix, Arizona received the required construction permit and has commenced its early phase of construction. First Solar has formulated the project by utilizing its sophisticated thin-film solar modules and will provide engineering, procurement and construction (EPC) services for the completion of the project. First Solar will continue to provide maintenance and operations services for the project. The project has made an application to avail a federal loan guarantee from the U.S. Department of Energy to finance the project and closing of the contract depends on getting the loan guarantee. NRG has plans to arrange around $800 million as equity investment for the project through a mix of cash and third-party equity investment.
NRG estimates that the 290 MW power project will generate enough electricity to power over 225,000 homes. During the project’s anticipated life period of 25 years the power generated from the project will counterbalance over 5.5 million metric tons of carbon dioxide, which can be equated to removal of around 40,000 cars from the road every year. The project anticipated to generate over 400 construction jobs will also bring in a number of economic benefits to the local business community.