Sunday, December 25, 2011

Buffett Buys Second Solar Project

Just a week after its first foray into solar, Warren Buffett's energy utility is acquiring another big solar project, also being developed by First Solar. MidAmerican Energy says it's buying a 49 percent stake in the 290 megawatt (MW) Agua Caliente project in Arizona. The plant is owned by NRG Energy and supported by a $967 million Dept of Energy loan guarantee. First Solar is expected to complete the $1.8 billion project in 2014.

Last week, MidAmerican announced it would buy its first solar project, the 550 MW Topaz Solar Farm in California. "We are aggressively pursuing opportunities to expand our presence in the renewable energy sector," says Greg Abel, MidAmerican CEO.

Utility-scale solar plants offer good, stable returns with little downside risk, since all the power is sold to utility PG&E, and they offer valuable tax credits.

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