Duke Energy (NYSE: DUK) for the first time is adding solar power to its commercial renewable energy portfolio through the acquisition of a large-scale solar photovoltaic project under development in San Antonio, Texas.
Duke Energy Generation Services (DEGS), a Duke Energy Commercial Businesses unit that owns and develops renewable power assets, will purchase the Blue Wing Solar Project from juwi solar Inc., based in Boulder, Colo. The 14-megawatts (MW) project will consist of 214,500 ground-mounted First Solar (Nasdaq: FSLR) thin film panels.
Construction will follow the close of the acquisition, which is
expected in the first quarter of 2010. The 139-acre project is expected
to be completed and energized by the fourth quarter of 2010. No other
terms were disclosed.
Blue Wing will be the first commercial
solar power project Duke Energy will own and operate. Duke Energy
Carolinas, part of the company's regulated business, is installing
solar panels on select business and residential customers' rooftops as
part of a $50 million program.
"Demand for power from renewable resources continues to rise," said Keith Trent, group executive and president of Duke Energy's Commercial Businesses. "Our entry into the commercial solar power industry reaffirms Duke Energy's commitment to generating emissions-free electricity for customers."
With the acquisition comes a 30-year power purchase agreement to sell all of the output from the solar farm and associated renewable energy credits to San Antonio-based CPS Energy, one of the largest municipality-owned utilities in the U.S.
"Duke Energy's acquisition of the Blue Wing Solar Project adds an exciting new dimension to our renewable power business," said Wouter van Kempen, president of DEGS. "We took our wind energy business from zero megawatts to more than 730 megawatts in under three years, so I'm very confident we can grow our solar power business."
Although Duke Energy plans to wholly own the Blue Wing project, the company said in a release that it continues to look for opportunities to jointly develop commercial solar power projects in the U.S. with China-based ENN Group, pursuant to an agreement signed in October 2009.
