Last month NRG Energy Inc. (NYSE: NRG) conditionally agreed to acquire the Aqua Caliente Solar project in Arizona from First Solar Inc. (Nasdaq: FSLR).
With an estimated cost of US$800 million, NRG said that it would purchase what will be the world's largest photovoltaic (PV) solar installation in the world if the U.S. Department of Energy (DOE) would back the project with a federal loan guarantee.
Reuters has reported that the DOE has come through with a loan guarantee offer worth US$967 million.
With this development the project will likely go ahead as planned. NRG will finance the project and will contract First Solar to install, operate and maintain the 290 MW PV facility.
NRG will sell the electricity to utility PG&E through a 25-year power purchase agreement. In 2014, when the facility is expected to be fully operational, Aqua Caliente will generate enough electricity to power 225,000 homes.
Joseph Baker is a freelance writer living in Vancouver BC. His areas of focus include renewable energy, sustainability and climate change.
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