Samsung beefs up presence in US solar market with Californian deal

South Korean electronics giant Samsung has stepped up its push into the US renewable energy market, announcing plans to build a series of Californian solar farms boasting a total 130MW of capacity by 2012.

The firm confirmed today that it has formed a joint venture with ENCO Utility Services to construct a 50MW power plant and three 20MW solar farms in Tulare County in California's Central Valley. It added that a fourth 20MW power plant was also planned for neighbouring Kings County.

Four of the projects are expected to begin generating electricity in mid-2012, with the fifth coming online in early 2013.

The new joint venture provided no details as to the cost of the project, but did reveal that it has signed a deal with Pacific Gas and Electric (PG&E) that will see the utility purchase the electricity produced by the new plants on a 25-year contract.

The deal, which is currently awaiting approval by regulators, is the latest in a series of moves by utilities in California designed to ensure they meet the state's target to source one-third of its electricity from renewable sources by 2020.

PG&E has signed a deal with a number of other suppliers as it looks to build 500MW of renewable capacity, while last month Southern California Edison announced a scheme to install 500MW of solar power on commercial rooftops.

The Los Angeles Department of Water and Power also recently unveiled plans to build one of the world's largest solar plants outside the city, which could eventually provide up to 3GW of power.

The move also provides further evidence of Samsung's commitment to break into the North American renewable energy market. Last month, the firm won a C$7bn (£4.2m) deal to build four wind and solar power clusters with a total capacity of 2.5 GW in Ontario, Canada, and the project is expected to provide a springboard for further investments in the US.