NRG Solar, a subsidiary of NRG Energy Inc., and SunPower Corp. have signed agreements to begin construction next year of the 250Â MW California Valley Solar Ranch in San Luis Obispo County.
The solar power plant is expected to create approximately 350 jobs during construction. NRG Solar plans to invest up to $450 million of equity in the project over the next four years, subject to final total project cost and negotiation of the financing terms and conditions.
Under the agreement, NRG will, subject to certain conditions, 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, which has provided a draft term sheet for the project.
SOURCE: SunPower Corp.