Edison Utility Takes Part in Large Solar Power Projects

California Edison Company made an agreement with First Solar Company that is planning to build solar power plants in Arizona. Southern California Edison has agreed to buy electricity to cover the needs of about 170 thousand households. The projects to be built will have the capacity of 550 MW of photovoltaic electricity comparing to natural gas plants with the capacity of approximately 1,000 MW. The construction of the first of two plants with the capacity of 250 MW will start in 2012 in Arizona Riverside County, and the construction of second plant will start in 2013 in San Bernardino County on the northern east of Arizona. Due to the construction of the two plants, which is planned to finish by the end of 2015, the state will receive hundreds of workplaces for builders. As for the financial conditions of the deal, Southern California Edison didn’t disclose any numbers, however it is reported that by the time the construction ends First Solar will have sold the two plants to investors. Edison agreed to participate in this deal to approach the 2010 state standards or generating 20 percent of energy from renewable sources. By 2030 this amount will rise up to 33 percent. Last year the company generated 16 percent of renewable energy, and about 65 percent of total amount of country’s solar energy. As for meeting the 20% standard, Edison officials say they will easily derive this amount of energy from renewables; however they are not sure whether they can deliver it to customers, because of transmission problems, so it’s possible, the company won’t be able to meet the standards by 2010. Meanwhile, Edison’s partner, First Solar is one of the leaders of photovoltaic energy production leaving all its competitors behind due to lower cost of production. The yield First Solar is going to get from the deal with Edison is estimated in $1.3 billion. The yearly revenues of First Solar are increasing significantly during the last couple of years, which makes this company very attractive to the investors.