NRG Energy, eSolar sign 500 MW solar deal

Princeton, N.J.-based NRG Energy (NYSE: NRG) said today its signed a deal to develop up to 500 MW of solar power plants with Pasadena, Calif.-based eSolar in California and the Southwest.

NRG plans to invest $10 million for an equity stake and the development rights to three projects and a portfolio of power-purchase agreements developed by eSolar, which is moving from being a project developer to a technology and equipment provider.

Solar thermal startup Ausra took a similar step last month (see Ausra shaves staff as it chases immediate revenue).

The deal represents NRG's first foray in solar. The company has invested in wind (see BP, NRG start up Texas wind farm), biofuels (see NRG Energy testing GreenFuel's algae system in Louisiana), and carbon capture (see NRG, Powerspan to demo large scale carbon capture). Its 48 plants have an energy generation capacity of 24 GW.

“By coupling NRG’s construction capabilities and regional operating expertise with eSolar’s innovative CSP technology, we can advance NRG’s renewable energy portfolio while helping to accelerate development of these important projects on a commercial scale,” said Michael Liebelson, chief development officer for low carbon technology for NRG, in a news release.

NRG plans to sell electricity to utilities. NRG says it will develop a basis on which to build future eSolar plants through the oversight of the design, construction and commissioning of eSolar's first commercial demonstration CSP plant, currently underway in Southern California (see SCE brings more solar thermal to California).

Southern California Edison (SCE), a division of Edison International (NYSE: EIX), signed a contract with eSolar to purchase 245 MW of solar power. eSolar says the power plant will be the first fully functioning solar thermal power tower plant built in the United States (see Cleantech Group picks winners and losers in concentrated solar thermal).

Last year, eSolar raised a $130 million round from Idealab, Google.org and Oak Investment Partners (see Going modular with eSolar). 

Cleantech developments making news in the past 24 hours

• Oorja expands methanol fuel cell deal with SSI
• Amyris partners with Brazil mills on ethanol-to-biofuel conversion
• China’s Trony Solar amends filings as it gears up for NYSE
• The rise and fall of the LED market
• Fire sale: Imara’s battery patents and trade secrets

View the last week of cleantech developments here | Subscribe to full feed