LOS ANGELES, Dec 17 (Reuters) – California regulators have approved a
long-term agreement for utility PG&E Corp (PCG.N) to buy power from a
48-megawatt project being built by Sempra Energy (SRE.N) and solar
panel maker First Solar Inc (FSLR.O).
The move by the California Public Utilities Commission on Thursday
clears the way for building to start in January and finish in late
2010, and then supply 30,000 homes with power.
California utilities are working to meet state mandates to get a third
of their power from renewable resources by 2020.
First Solar teamed up with Sempra in April on the project near Boulder
City, Nevada. It adds to a 10 MW plant First Solar previously built
for Sempra's generation unit.
When completed, the facility's combined 58 MW will be sold to PG&E
under two 20-year power contracts.
First Solar has benefited from cost-conscious utilities' efforts to
buy more clean power through deals with Sempra and Edison
International's (EIX.N) Southern California Edison.
The Tempe, Arizona-based company's cadmium telluride-based solar
panels are cheaper to make, though less efficient, than traditional
silicon-based panels made by companies like Suntech Power Holdings Co
Ltd (STP.N) and SunPower Corp (SPWRA.O).
Sempra Generation has traditionally relied on natural gas for
electricity. But it set a goal to be the first company with 500 MW of
solar power, meaning the renewable resource will represent about a
sixth of what it generates — now 2,600 MW.
Toward that goal, the unit is working on its next solar project,
planned for an area west of Phoenix, Arizona, which could accommodate
300 MW to 500 MW of panels, Sempra Generation's chief executive,
Michael Allman, said in an interview.
"Our preference is the bigger, the better," Allman said, referring to
the size of plants the company wants to develop, adding that he may
even seek project finance for them.
He said the Arizona project could start construction next year, having
received almost all the necessary permits, after which Sempra will
look to sign a power purchase agreement. Sempra aims to select a panel
supplier for it in early 2010.
