The world's best-known investor Warren Buffett's MidAmerican Energy Holdings is making a huge bet on solar energy by proposing to buy a 49-per cent stake in an Arizona power plant from NRG Energy, its second investment in the solar industry in 10 dqays.
The investment comes after early this month MidAmerican acquired the $2-billion Topaz Solar Farm project from First Solar, the world's biggest solar company by market value. (See: Warren Buffett buys one of world's top two solar projects)
Buffett's MidAmerican Energy Holdings, the utility arm of investment giant Berkshire Hathaway, yesterday agreed to buy a stake in the $1.8-billion 290-megawatt Agua Caliente project in Yuma County, Arizona.
The Agua Caliente project, which is supported by a $967-million loan guarantee from the US Department of Energy (DoE), is being built by Tempe, Arizona-based solar-panel maker First Solar, the same company from which MidAmerican had bought the $2-billion Topaz Solar Farm project, earlier this month.
The project is expected to generate enough electricity to offset about 5.5 million metric tons of carbon dioxide over 25 years. The plant, which is expected to be completed by 2014, has a long-term power purchase agreement with Pacific Gas and Electric for the entire project output.