Warren Buffet Utility Buys Solar Projects From SunPower In $2.5 Bln Deal
By RTT News, January 02, 2013, 11:01:00 PM EDT
(RTTNews.com) - MidAmerican Energy Holdings Co., a company controlled by billionaire investor Warren Buffett'sBerkshire Hathaway Inc. (BRKa, BRK-A, BRK-B), has acquired two solar photovoltaic power plant projects in California from SunPower Corp. ( SPWR ), the two companies said Wednesday.
MidAmerican will pay an amount between $2 billion and $2.5 billion for the sale, construction and operation of the projects by SunPower.
The two co-located projects in Kern and Los Angeles Counties in California are part of the 579-megawatt Antelope Valley Solar Projects. Together, the two combined projects will form the largest permitted solar photovoltaic power development in the world and will create an estimated 650 jobs during construction.
Construction of the solar projects is scheduled to begin in first quarter 2013, with the plants expected to be complete by the end of 2015.
The Antelope Valley Solar Projects will provide renewable energy to utility company Southern California Edison or SCE, under two long-term power purchase contracts approved by the California Public Utilities Commission.
SunPower, a subsidiary of French oil giant Total SA (TOT, TTFNF.PK, TTA.L), developed the co-located Antelope Valley Solar Projects over the last four years.
At the 3,230-acre site, SunPower will install the SunPower Oasis Power Plant product. In addition, SunPower will be the engineering, procurement and construction contractor and will operate as well as maintain the facility under a multi-year services agreement.
MidAmerican Renewables, a subsidiary of MidAmerican Energy, has a total portfolio of more than 1,830 megawatts of owned assets, including wind, geothermal, solar and hydro assets.
Projects of the company's subsidiary, MidAmerican Solar, include the 550-megawatt Topaz Solar Farms in San Luis Obispo County, California, and a 49 percent stake in the 290-megawatt Agua Caliente solar project in Yuma County, Arizona.
Bill Fehrman, president of MidAmerican Renewables said, "We are excited about these projects because they support our core business principle of environmental respect. We are very proud to add SunPower technology to our portfolio of projects."
According to estimates provided by the U.S. Environmental Protection Agency, the project is expected to offset more than 775,000 tons of carbon dioxide emissions per year, which is equivalent to removing almost three million cars from California's highways over 20 years of the plant's operation.
SunPower has more than 1,000 megawatts of solar power plants operating worldwide, including the first 130 megawatts of the 250-megawatt California Valley Solar Ranch, which is under construction in San Luis Obispo County, California.
SPWR closed Wednesday's trading at $6.13, up $0.51 or 9.07 percent on a volume of 2.06 million shares.
BRK-B closed trading at $93.20, up $3.50 or 3.90 percent on a volume of 7.53 million shares.
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