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Dec. 27 (Bloomberg) -- Sempra Energy, California’s third- largest utility, began producing power at a 150-megawatt solar project in Arizona that received a $337 million U.S. Energy Department loan guarantee three months ago.
Workers at the Mesquite Solar 1 project connected 42 megawatts of Suntech Power Holdings Co. panels to the power grid, San Diego-based Sempra said today in a statement.
The plant, located about 40 miles (64 kilometers) west of Phoenix, is expected to be complete in 2013 and will produce enough power for 50,000 homes, Sempra said. The company is selling the power to California’s largest utility, PG&E Corp., under a 20-year contract.
Southern California Edison Co. is the state’s second- largest utility.
--Editors: Will Wade, Jasmina Kelemen
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