Feb 28 2011
NRG Energy declared that it has agreed to buy the 290 MW Agua Caliente solar project owned by First Solar through its fully owned auxiliary company NRG Solar.
NRG Solar has made an application to the U.S. Department of Energy for a federal loan guarantee to receive funding for the project, which is considered to be the first step to commence the construction under the program. NRG Energy intends to close the acquisition depending upon its receiving the loan guarantee.
The Agua Caliente solar project is to be located over 2,400 acres of land situated between Yuma and Phoenix Arizona. The project has received all the required construction permissions from the authorities and commenced the preliminary construction works. First Solar will provide the operational and maintenance services for the project that will get completed utilizing advanced thin-film solar modules. The company has plans to invest around $800 million as equity in the project during 2014 in the form of its own cash over and above the equity from the third-party investors.
When completed, the 290 MW power project will generate renewable clean power to supply electricity to over 225,000 homes. The power generated from the project can offset around 5.5 million metric tons of carbon dioxide emissions during the project life span of 25 years this can be equated to removing about 40,000 cars off the road every year. The facility will generate over 400 constructions jobs and bring in economic benefits to the local businesses.