Sempra Gen Aims To Build, Sell 500 MW Of Solar Power
September 30 2009 - 9:47PM
Dow Jones News
Sempra Energy's (SRE) merchant generation unit is looking to
build up to 500 megawatts of new solar-power plants over the next
few years, the unit's top executive said Wednesday.
The San Diego-based company owns a 10-megawatt solar farm in
Boulder City, Nev., that was built by solar-panel maker First Solar
Inc. (FSLR). First Solar is set to build a second, 48-megawatt
solar farm for Sempra near the existing solar farm. Sempra has sold
the output from both plants to PG&E Corp. (PCG) utility Pacific
Gas & Electric Co.
Next, Sempra Generation aims to develop as much as 500 megawatts
of solar-power plants that use solar panels and/or solar-thermal
technology, on more than 4,000 acres of land the company controls
near Phoenix, Michael Allman, the unit's president and chief
executive, said in an interview.
"We're testing the market to see who would be the best
supplier," Allman said, adding he expects to choose a supplier by
the end of the year and it won't necessarily be First Solar.
The company is also focused on landing one or more power
purchase agreements with one or more utilities for the output
within the same time period, Allman said.
After choosing a supplier and finding a customer for the power,
the project could be developed fairly quickly, Allman said. Sempra
has a long-term lease on the land, which is adjacent to the
company's 1,250-megawatt natural gas-fired Mesquite power plant,
the existing transmission infrastructure is sufficient to ship the
solar power to markets in Arizona and California, and the solar
farm will need only local development permits, which are generally
easier and faster to get than state and federal land-use licenses,
he said.
If the company can secure orders for 500 megawatts, it could
build that amount as soon as 2012, Allman said. The timing will
depend on how quickly the company can sign one or more utility
power purchase agreements, and how quickly the supplier could
deliver the equipment needed to build the solar farm, Allman
said.
Demand for solar, wind and other renewable power is strong in
California, Nevada and other western states, where utilities are
required to use renewable sources for a portion of the power they
sell.
California Gov. Arnold Schwarzenegger earlier this month ordered
state agencies to set rules requiring the state's utilities to use
renewable sources for a third of their retail power by 2020, up
from 20% they're currently required to line up by 2010.
Shares of Sempra closed Wednesday 35 cents lower, at $49.81.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468;
cassandra.sweet@dowjones.co