Sempra U.S. Gas & Power and Consolidated Edison Development (ConEdison Development) have announced an agreement to partner on two of Sempra's solar power facilities: the 150 MW Copper Mountain Solar 2 plant near Las Vegas and the 150 MW Mesquite Solar 1 power plant near Phoenix.
Under the sales agreement, each company will own a 50% interest in the two solar facilities. Sempra will continue to provide operations and maintenance services to both plants.
‘This strategic partnership bolsters Sempra U.S. Gas & Power's ongoing plan to improve its financial returns, deconsolidate debt and redeploy the proceeds from the transaction into new renewable growth projects,’ explains Kevin C. Sagara, Sempra's vice president of renewables and corporate development.
Construction on Mesquite Solar 1, located in Arlington, Ariz., began in 2011. Power from the facility has been sold to Pacific Gas & Electric (PG&E) under a 20-year contract.
Phase 1 of Copper Mountain Solar 2 is complete and is currently generating 92 MW. When the second phase is fully constructed, expected in 2015, the project's total operating capacity will be 150 MW. PG&E is also buying Copper Mountain's output under a 20-year agreement.
In September 2011, the U.S. Department of Energy's (DOE) Loan Program Office awarded Mesquite Solar 1 a $337 million loan guarantee to build the plant. The agreement is subject to approvals from the DOE and regulatory agencies. Those approvals are anticipated in the second half of this year, and terms of the sale were not disclosed.
