NRG Solar, a unit of NRG Energy Inc., plans to invest up to $450 million in project equity over four years to help begin construction next year of the 250 MW California Valley Solar Ranch in San Luis Obispo County. The investment is subject to final total project cost and negotiation of the financing terms and conditions.
Under the agreement NRG will assume all ownership and financing responsibilities for the California Valley Solar Ranch. SunPower will continue to develop the project and will design, build, operate and maintain the solar power plant. Construction is expected to start in the second half of 2011, with a portion of the project expected to begin operating by the end of 2011 and the balance coming on line in 2012 and 2013.
The project is currently seeking a loan guarantee from the U.S. Department of Energy’s Loan Guarantee Program Office.The DOE Loan Guarantee Program Office has provided a draft term sheet for the California Valley Solar Ranch project.
California Valley Solar Ranch has executed 25-year power purchase agreements with Pacific Gas &
Electric for delivery of 250 MW. The power purchase agreements have been approved by the California Public Utilities Commission. The closing of the NRG and SunPower agreements is subject to the satisfaction of customary closing conditions and the completion of development, including obtaining required permitting and regulatory approvals.
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