California Solar Ranch to Begin Construction in 2011

SAN JOSE, Calif. — NRG Solar, a subsidiary of NRG Energy, Inc. and SunPower Corp. announced earlier this week their agreement to begin construction next year of the 250-megawatt California Valley Solar Ranch in San Luis Obispo County.

The plant will generate 250 megawatts of electricity — enough energy to power 100,000 homes — and will be one of the largest photovoltaic solar power plants in the world. NRG Solar will invest up to $450 million of equity in the plant over the next four years, subject to final total project costs and negotiation of the financing terms and conditions.

Under the agreement, NRG will assume all ownership and financing responsibilities for the plant. SunPower will design, build, operate and maintain the plant. Construction will begin in the middle of 2011 and the first phase will be online by the end of the year. The plant will be fully operational by 2013.

The California Valley Solar Ranch will help California achieve its 33 percent renewable portfolio standard. It is
currently seeking a loan guarantee from the Loan Guarantee Program Office at the U.S. Department of Energy.

The DOE’s Loan Guarantee Program Office has provided a draft term sheet for the project, a step in the process of securing a conditional loan guarantee commitment.

The California Valley Solar project has entered in to a 25-year power purchase agreement with Pacific Gas & Electric for delivery of 250 megawatts. The California Public Utilities Commission approved the PPA.