Warren Buffett's
energy company has placed another big bet on solar power plants,
spending up to $2.5 billion to buy two facilities under development by
San Jose's SunPower Corp.
A subsidiary of Buffett's MidAmerican Energy Holdings Co. will own the 579-megawatt Antelope Valley Solar Projects, two power plants that will straddle the line between Kern and Los Angeles counties in the Mojave Desert. SunPower will manage the plants' engineering and construction under a deal the companies reported Wednesday.
Construction is expected to begin in the next three months and wrap up in 2015, employing about 650 workers. Once complete, the plants will sell electricity to Southern California Edison under agreements already approved by California utility regulators.
The deal isn't MidAmerican's first foray into large-scale solar power. The company already invested in the 550-megawatt Topaz Solar Farms in San Luis Obispo County and has a 49 percent ownership stake in the 290-megawatt Agua Caliente solar plant in Arizona.
A megawatt is a snapshot figure, roughly equal to the amount of electricity used by 750 typical homes at any given instant.
"We are excited about these projects because they support our core business principle of environmental respect," said Bill Fehrman, president of MidAmerican Renewables.
SunPower has spent the last four years designing and securing permits for the Antelope Valley projects, which will be built near the Kern County town of Rosamond. The company may eventually build a third, smaller plant at the site, according to a document SunPower filed with federal regulators Wednesday.
Although MidAmerican will own the Antelope Valley projects, SunPower will continue to operate and maintain them for 20 years. The two companies did not disclose Wednesday how much money SunPower will receive for those services. SunPower's stock rose 9 percent Wednesday to $6.13.
The projects will help California reach its goal of getting 33 percent of its electricity from renewable sources by the end of 2020.
A subsidiary of Buffett's MidAmerican Energy Holdings Co. will own the 579-megawatt Antelope Valley Solar Projects, two power plants that will straddle the line between Kern and Los Angeles counties in the Mojave Desert. SunPower will manage the plants' engineering and construction under a deal the companies reported Wednesday.
Construction is expected to begin in the next three months and wrap up in 2015, employing about 650 workers. Once complete, the plants will sell electricity to Southern California Edison under agreements already approved by California utility regulators.
The deal isn't MidAmerican's first foray into large-scale solar power. The company already invested in the 550-megawatt Topaz Solar Farms in San Luis Obispo County and has a 49 percent ownership stake in the 290-megawatt Agua Caliente solar plant in Arizona.
A megawatt is a snapshot figure, roughly equal to the amount of electricity used by 750 typical homes at any given instant.
"We are excited about these projects because they support our core business principle of environmental respect," said Bill Fehrman, president of MidAmerican Renewables.
SunPower has spent the last four years designing and securing permits for the Antelope Valley projects, which will be built near the Kern County town of Rosamond. The company may eventually build a third, smaller plant at the site, according to a document SunPower filed with federal regulators Wednesday.
Although MidAmerican will own the Antelope Valley projects, SunPower will continue to operate and maintain them for 20 years. The two companies did not disclose Wednesday how much money SunPower will receive for those services. SunPower's stock rose 9 percent Wednesday to $6.13.
The projects will help California reach its goal of getting 33 percent of its electricity from renewable sources by the end of 2020.
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