PG&E agrees 1.3GW solar deal

US energy giant Pacific Gas and Electric (PG&E) has this week signed a new deal with solar firm BrightSource Energy to buy 1.31 GW of solar thermal power.

As part of the contract, BrightSource will build and operate seven solar power plants in the California desert that will produce 3,666 gigawatt-hours of power each year, equal to the annual consumption of about 530,000 average homes.

California-based PG&E has emerged as one of the leading purchasers of solar energy in the US, having recently signed two other large-scale purchasing deals for over 800MW of power, and become involved in ambitious plans to develop space solar energy. The company also has its own solar building programme, which will see it invest in 250MW of its own solar capacity.

John Conway, senior vice president of energy supply for PG&E, said the latest contracts with BrightSource further underlined PG&E's commitment to renewable energy. "Through these agreements with BrightSource, we can harness the sun's energy to meet our customers' power requirements when they need it most – during hot summer days," he said.

The first of the new BrightSource solar power plants, sized at 110 MW, will begin operating in 2012, with construction of the other six plants to follow after that.

The plants work by using hundreds of mirrors to focus the sun's rays on a central tower to boil water that will drive a turbine.

The contracts supersede a contract PG&E signed with BrightSource to buy 900MW of solar power last year as the company looks to up its renewables quota.

California state law requires utilities to source at least 20 per cent of their electricity from renewable sources by 2010.

PG&E said that half of the electricity it delivers to customers already comes from "carbon-free" sources.

The deal is a further coup for BrightSource, which has thrived as a number of other US solar firms struggled in the recession.

Chief executive John Wollard said the deal is a reward for the high level of efficiency delivered by the company's solar farm design. "Our technology is setting the bar for efficient production of solar energy. We're thrilled by the opportunity to help PG&E and other leaders bring energy customers more clean and reliable solar energy," he said.

In related news, the Mohave solar company is planning construction of what could be the world's largest solar thermal plant at 340MW in Arizona in 2012.