Bloomberg News

First Solar Sells Two Projects With U.S. Guarantees

September 30, 2011

(Corrects financing details in fifth paragraph.)

Sept. 30 (Bloomberg) -- First Solar Inc., the world’s largest maker of thin-film solar panels, sold two power projects in California that received U.S. Energy Department loan guarantees.

Exelon Corp. bought the company’s 230-megawatt Antelope Valley Solar Ranch 1 project in Los Angeles County, and NextEra Inc. and General Electric Co. bought its 550-megawatt Desert Sunlight project in Riverside County, First Solar said today in separate statements.

Exelon said it plans to invest as much as $1.36 billion in Antelope Valley, which is expected to add to its earnings in 2013. First Solar didn’t give a price for the Desert Sunlight sale. The solar company typically sells the projects it develops.

The Energy Department announced today guarantees of $646 million for Antelope Valley and $1.46 billion for Desert Sunlight.

The loan for Antelope Valley will come from the Treasury Department’s Federal Financing Bank. Citigroup Inc. and Goldman Sachs Group Inc. are providing debt financing for Desert Sunlight.

Construction of Desert Sunlight is expected to be completed by the first quarter of 2015, Alan Bernheimer, a spokesman for Tempe, Arizona-based First Solar, said today in an e-mail. PG&E Corp. will buy 300-megawatts of output for 25 years, and Edison International’s Southern California Edison Co. will buy 250 megawatts for 20 years.

Antelope Valley is expected to be completed in late 2013, and PG&E will buy the power for 25 years.

--Editors: Will Wade, Tina Davis

To contact the reporter on this story: Andrew Herndon in San Francisco at aherndon2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


Cash Is for Losers
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus