San Diego Gas & Electric (SDG&E), a Sempra Energy (NYSE: SRE) subsidiary, recently announced that it has signed two power purchase contracts that will collectively add 200 MW of renewable energy to its portfolio.
The San Diego utility came to terms with solar developer Solar Gen 2, LLC to purchase all of the energy produced at a solar farm under development in the Imperial Valley, California.
The solar project will employ solar photovoltaic panels with single-axis tracking to generate 150 MW of renewable energy. Being built in three 50 MW phases, SDG&E expects energy from the first phase to be added to the power grid by summer 2012.
The signing of this 25-year power purchase agreement (PPA) comes just a month after the company signed similar contracts with enXco and Arlington Valley Solar Energy II, LLC. These agreements will combine to generate 237 MW of solar energy.
SDG&E said that it has also signed a one year PPA with Silicon Valley Power for 40 MW of geothermal energy. The contract began July 1st and will continue through June 2012. The energy is being delivered from a geothermal facility located in the Northern California.
With the addition of these two renewable energy contracts SDG&E has now signed 14 renewable PPA's that total 1,225 MW.
"We continue to add more diversity to the mix of green energy in our renewable portfolio," said James P. Avery, SDG&E's senior vice president of power supply
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