Warren Buffet’s power company, MidAmerican Energy Holdings, is jumping into solar power and plans to buy up a massive solar farm from First Solar(s FSLR). The planned 550 MW solar panel farm called Topaz is in San Luis Obispo County in central California.
The move is the latest step on the long road to the solar farm actually getting built; it was originally owned by OptiSolar back in 2009. First Solar will build, operate and maintain Topaz, and the sale must be a huge relief for the solar panel maker and project developer, which was able to secure federal loan guarantees for three projects but couldn’t close one for Topaz. It started construction last month and plans to complete it in early 2015.
The project will cost “more than $2 billion,” the companies said, and MidAmerican doesn’t need to borrow money to close the deal.
The purchase represents MidAmerican’s foray into solar energy and reflects the growing interest of traditional energy company to add more solar generation to their portfolio. The Iowa-based company owned or held contracts to buy 22,000 MW of power by the end of 2010, the company said. The company’s renewable energy assets include wind and geothermal power plants.
The company, which is controlled by Buffett’s Berkshire Hathaway (s BRK-A), also owns utilities, including one that serves customers in Iowa, Illinois, South Dakota and Nebraska. Its other utility, PacifiCorp, serves parts of Oregon, Washington and California. But power from Topaz will go to Pacific Gas and Electric to serve customers in central and northern California.
Photo courtesy of First Solar
RT @SoCalSpark: Warren Buffett dives into solar energy with huge purchase. http://t.co/H19Tkusl via @LilyShumLeung
Dear solar doubters / investors – Warren Buffet is buying up solar farms. http://t.co/OiDOAz1f
RT @Earth2Tech: Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/TBL5T0aj
RT @Earth2Tech: Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/TBL5T0aj
Warren Buffett’s MidAmerican buys massive Topaz solar farm
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Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/2zJlHimV @therezafontoura @eikebatista
Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/S9XTbZGm
RT @UciliaWang: First Solar sold 550MW Topaz project to Warren Buffett’s MidAmerican, in my @GIgaOm post http://t.co/lg9ZDMpa
Warren Buffett dives into solar energy with huge purchase. http://t.co/iG3oNW3L via @LilyShumLeung
Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/dNA3lSkN #in
Oracle of Omaha bets big on #solar: http://t.co/n4N8Lwkc #buffett via @UciliaWang
RT @katiefehren: Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/zc9FpP8d
RT @katiefehren: Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/zc9FpP8d
RT @UciliaWang: First Solar sold 550MW Topaz project to Warren Buffett’s MidAmerican, in my @GIgaOm post http://t.co/lg9ZDMpa
RT @katiefehren: Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/zc9FpP8d
Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/KpbD9amU
Excellent. The curse of Optisolar being lifted. If they can build it for $2.2 billion, that comes to $4 per watt (and no interest applies since they aren’t borrowing). Higher than gas, yes, but lower than nuclear and neighbor complaints should be lower than coal, nuke or gas.
I guess you can say it just takes a lot of money to lift that curse. Neighborhood complaints began long before though. First Solar had to reach a legal settlement with environmental groups: http://gigaom.com/cleantech/solar-companies-learn-to-play-nice-with-environmentalists/
Warren Buffett’s MidAmerican buys massive Topaz solar farm: http://t.co/hmBYCOmn
Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/zc9FpP8d
RT @UciliaWang: First Solar sold 550MW Topaz project to Warren Buffett’s MidAmerican, in my @GIgaOm post http://t.co/lg9ZDMpa
First Solar sold 550MW Topaz project to Warren Buffett’s MidAmerican, in my @GIgaOm post http://t.co/lg9ZDMpa
RT: @Earth2Tech: Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/VwK165U0
Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/TBL5T0aj
Warren Buffett’s MidAmerican buys massive Topaz solar farm: Warren Buffet’s power company MidAmerican Energy Ho… http://t.co/Bb83KRY1
Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/W92pR7ig
Warren Buffett’s MidAmerican buys massive Topaz solar farm http://t.co/aP8VPK5D
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Warren Buffett’s MidAmerican buys massive Topaz solar farm: Warren Buffet’s power company MidAmerican Energy Ho… http://t.co/TefY9F0Q
Warren Buffett’s MidAmerican buys massive Topaz solar farm: Warren Buffet’s power company MidAmerican Energy Ho… http://t.co/D8OAX24t