NextEra to Buy Solar Projects - Analyst Blog

NextEra Energy Resources LLC, a unit of NextEra Energy Inc. (NEE) has agreed to buy four solar photovoltaic (PV) projects in Ontario, Canada from First Solar Inc. (FSLR). Total capacity of these projects, located in Sombra and Moore Townships, Ontario, is estimated to be 40 megawatts (MW), capable of serving nearly 6,440 homes.

First Solar has agreed to complete construction at its Sombra and Moore Solar Energy Centers before NextEra Energy Resources' Canadian subsidiary, NextEra Energy Canada, takes over the ownership and operation of all four projects. First Solar will use its advanced thin film technology on a fixed tilt system to develop these sites.

The Sombra and Moore Solar Energy Centers will each consist of two 10-MW solar PV projects with more than 172,000 panels at each project. All the power produced from these four solar projects will be sold to the Ontario Power Authority under long-term contracts.

Through the development of the four solar power projects the companies expect to promote a clean-energy economy in Ontario, Canada's most populous province. The companies estimate these projects to reduce carbon dioxide emissions by nearly 45,000 tons every year. This is equivalent to removing nearly 8,600 cars from the road every year during the entire life of the project.

Construction on all four projects is expected to begin in the first quarter of 2011 with commercial operation expected by the end of 2011. The projects still await government approvals.

Juno Beach, Florida-based NextEra Energy is a public utility engaged in the generation, transmission, distribution, and sale of electric energy. The company has both regulated and non-regulated energy-related products and services, with operations in the U.S. and Canada.

NextEra Energy Resources, the competitive energy subsidiary of NextEra Energy, is the largest generator of solar and wind energy in North America. NextEra Energy Resources' purchase of solar projects from First Solar constitutes the company's first solar power project in Canada.

Phoenix, Arizona-based First Solar designs, manufactures, and sells solar electric power modules with advanced semiconductor technology and provides comprehensive photovoltaic (PV) system solutions. The company is delivering an economically viable alternative to fossil-fuel generation today.

This deal marks the beginning of a new customer relationship for First Solar with NextEra Energy Resources. Both the companies share a strong commitment to developing renewable energy in North America. Together both NextEra and First Solar expected to continue contributing to Canada's clean energy needs.

 
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