Starwood, Lockheed Martin Pull Out Of Solar PPA With Arizona Utility

APS, Arizona's largest electricity utility, says Starwood Energy Group Global LLC has terminated its long-term purchase power agreement related to the Starwood Solar I project: a 290 MW concentrating solar power (CSP) plant that was scheduled to be built west of Phoenix.

Lockheed Martin was the engineering, procurement and construction firm that partnered with Starwood to develop the project. APS says ‘the size and the final risk profile of the engineering, procurement and construction contract, among other factors,’ caused Lockheed Martin to back out of the project.

‘We intend to aggressively respond to this development as we stay on track with our plans to increase the amount of renewable energy we provide to customers,’ says Don Robinson, president of APS.

Starwood Solar I was the second large-scale solar project announced by APS in the last 19 months. The first, Solana, is still moving forward, the utility says. Financing for the 280 MW CSP plant is expected to be announced in the first half of 2010.



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