Buffet's MidAmerican acquires two solar projects in California for $2.5 billion

Warren Buffett's MidAmerican Energy Holdings Co  will spend $2.5 billion on setting up two solar projects in California that would be the world's largest photovoltaic projects.

The 579 MW Antelope Valley projects were acquired by MidAmerican from SunPower Corp, according to a statement yesterday. MidAmercan has agreed to pay $2 billion to $2.5 billion to the San Jose, California-based SunPower for the projects in Kern and Los Angeles counties under a three year contract. 

SunPower would build and also operate and maintain the projects under a multi-year agreement with MidAmerican.

According to analysts, Buffett has been boosting investment in wind and solar farms and last year set up a MidAmerican unit for supporting the projects it had acquired.

This includes the $2.4 billion 550 MW Topaz solar farm in California. Chief financial officer Patrick Goodman said in November the company favoured bets on renewable energy amid high utility valuations.

President and chief executive officer SunPower, Tom Werner,  said in an interview yesterday that customers, investors and banks saw this as a stamp of approval on SunPower. He added, it was a huge deal for the company, which was roughly the size of the company itself.