San Diego Gas & Electric to buy power from LS Power's 127-MW Arlington Valley Solar Energy II project to be built in Maricopa County, Arizona; 25 MW to be delivered by Q1 2013, another 25 MW every two months until complete
June 16, 2011
– San Diego Gas & Electric (SDG&E) today announced it has signed two new renewable contracts -- one with a subsidiary of San Diego-based enXco and the other with Arlington Valley Solar Energy II, LLC (a subsidiary of LS Power Development, LLC) for a combined total capacity of up to 237 megawatts (MW) of solar energy.
The Catalina Solar project to be developed by enXco will have the capacity to generate up to 110 MW from the sun, starting with delivery of 50 MW by the end of next year and the remaining 60 MW by June 2013.
"SDG&E already has contracts with enXco for two wind projects in the same geographical area, including the 60-MW capacity Oasis Wind Project, producing since 2004," said Matt Burkhart, vice president of electric and fuel procurement for SDG&E. "The other project, Pacific Wind, with a capacity of 140 MW, is still under development and on target for operation by next summer. This new enXco solar project is an excellent addition to our renewable portfolio."
"Catalina Solar represents enXco's largest utility-scale solar project to be developed in the U.S.," said Tristan Grimbert, president & chief executive officer of enXco. "The project builds upon both the company's extensive experience in Kern County as well as our long-term relationship with SDG&E. We look forward to delivering another successful project to SDG&E."
The 25-year contract with Catalina Solar, LLC calls for a ground-mounted photovoltaic (PV) system to be built in Kern County on property in the Rosamond/Tehachapi area. It will produce enough clean energy to power about 35,000 homes and will offset about 74,000 metric tons of greenhouse gas emissions, helping to improve overall air quality in California in line with the state's environmental mandates.
The project is expected to connect to the statewide power grid via Southern California Edison's Tehachapi Renewable Transmission Project (TRTP). The TRTP, like SDG&E's Sunrise Powerlink, is a CPUC-approved transmission upgrade built specifically to deliver green energy to the state's power grid from remote areas where the energy is produced.
The agreement with Arlington Valley Solar Energy II (AVSE II) calls for up to 127 MW to be generated by ground-mounted PV panels at a solar farm to be built in Maricopa County, Ariz., with delivery of at least 25 MW by the end of the first quarter of 2013, and another 25 MW delivered every two months until the project is built out.
SDG&E will receive both the power and the renewable energy credits from this project, which will connect at the same substation in Arizona where SDG&E's Southwest Powerlink begins. The green energy produced will be scheduled into the California Independent System Operator's statewide grid.
"This kind of contract is a win-win for our customers and the state," said Burkhart. "Also, as part of the contract, the developer has agreed to purchase a portion of the solar panels for the project from a California-based supplier."
"The Arlington Valley Solar project is one of LS Power's most advanced solar energy farms, with state and county permits in-hand," said John King, executive vice president of LS Power. "We are pleased that we can proceed to financing and construction to deliver SDG&E cost-effective solar power beginning in 2013."
Both contracts require approval by the California Public Utilities Commission. Since January, SDG&E has signed 12 new renewable contracts, for a combined total of 1,035 MW.
SDG&E is a regulated public utility that provides safe and reliable energy service to 3.5 million consumers through 1.4 million electric meters and more than 850,000 natural gas meters in San Diego and southern Orange counties. The utility's area spans 4,100 square miles. SDG&E is committed to creating ways to help our customers save energy and money every day. SDG&E is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company based in San Diego.
enXco, an EDF Energies Nouvelles Company, develops, constructs, owns, operates and manages renewable energy projects throughout the United States. For more than two decades, we have been a leader in wind-energy focusing on large-scale wind projects. Today, enXco's portfolio includes solar and biomass technologies, in an effort to help drive our nation's transition to a sustainable energy economy. enXco is a significant owner and developer of wind-energy installations in the United States, and is the leading third-party operations & maintenance provider for wind farms in North America.
About LS Power
LS Power is a power generation and transmission group with a proven track record of successful development activities, operations management and commercial execution. LS Power has been involved in the development, construction, or operations of more than 20,000 MW of power generation throughout the United States. LS Power is actively developing both power generation and transmission infrastructure to serve the need for new generation and improve the aging transmission system. Highly regarded in the financial community, LS Power has raised more than $13 billion to support investment in energy infrastructure since 2005.