The deal relates to the $500 million Centinela Solar Energy Facility, which is being developed by LS Power and is expected to be completed in 2014.
It will see electricity transferred to SDG&E’s service area across a 120-mile high voltage transmission line called the Sunrise Powerlink.
The power line is scheduled to be up and running from 2012, carrying up to 1,000MW of electricity in from the Imperial Valley area, which boasts geothermal power projects as well as solar developments.
The Centinela solar project will use photovoltaic technology on a 1,150-acre desert site near Calexico, California.
Commenting on the power deal, SDG&E president and chief operating officer Michael R. Niggli said: “This contract is the result of diligent efforts focused on cultivating local solar, wind and geothermal resources for San Diego. It will help us fill the Sunrise Powerlink with green power and meet the state’s aggressive renewable goals.”
Under the arrangements with LS Power, SDG&E will buy power through to 2033, the equivalent of enough electricity to supply 45,000 households. The utility serves 1.4 million electricity customers in San Diego and Orange County.
The contract remains subject to the approval of the California Public Utilities Commission.
John King, executive vice president of LS Power, said: “The Imperial Valley is an excellent location to develop solar power and we look forward to working with SDG&E and Imperial County to make this project a reality. The emissions-free power produced by this facility will energize local communities and help protect the environment.”
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