With wholesale power prices collapsed and prominent CEOs openly describing the merchant power model as “obsolete”, solar and wind projects with long-term contracts can look pretty good. At least that’s what power giants like NextEra seem to be thinking, as they move increasingly into renewable energy.
As part of that trend, today Sempra Renewables announced the acquisition of the Great Valley Solar Project from Canadian Solar subsidiary Recurrent Energy. The 200 MW-AC solar project is currently under construction near Fresno, in California’s Central Valley, next to another 200 MW-AC solar plant which Recurrent built.
The project holds four power purchase agreements which cover its output. Sempra says that it is taking over construction of the project and expects to put it online during the third quarter of 2018.
Renewables remains a very small part of Sempra’s overall portfolio, which includes utility San Diego Gas & Electric Company (SDG&E). In the second quarter of 2017 the renewables division brought in less than 10% of the company’s $259 million in earnings.