Buffett goes solar with 550-megawatt PV plant deal

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Warren Buffett's MidAmerican Energy Holdings has announced that it is in the process of buying a 550-megawatt California PV solar plant now under construction in San Luis Obispo County, California. MidAmerican will buy the Topaz Solar Farm from First Solar, Inc. It is expected to have enough capacity to provide renewable energy to about 160,000 California homes.

The plant broke ground last month and should be completed by early 2015. Terms and cost were not disclosed, but some news outlets are saying MidAmerican probably got a good deal. CNNMoney.com noted that MidAmerican "likely scored the project at a discount," referring to a solar market hit by a drop in demand and a very large oversupply – not to mention the well-publicized Solyndra bankruptcy which did nothing to help the shaky sector.

The $2 billion-plus project is, MidAmerican said, one of the two largest PV projects worldwide. Both are being built by First Solar. Pacific Gas & Electric Company will buy the electricity from the Topaz Plant under terms of a 25-year power purchase agreement.

While the Topaz buy is MidAmerican's entry into the solar market, the company is no stranger to renewables. The company says it is the number one owner of wind-powered energy production of all U.S. rate-regulated utilities.

"Adding solar energy to our generation portfolio is a strategic move to invest in yet another renewable energy source. Our investment in wind resources benefits both our customers and the environment, and our entry into the solar energy industry expands our renewable energy footprint and will help meet current and future energy needs in a manner that reflects our ongoing commitment to environmental respect and cost-effective generation," said Greg Abel, MidAmerican chairman, president and CEO. MidAmerican is controlled by Berkshire Hathaway.

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