Warren Buffett’s MidAmerican Energy Holdings Co. (BRK/A) agreed to spend as much as $2.5 billion to build two solar projects in California that are set to be the world’s largest photovoltaic development.
MidAmerican acquired the 579-megawatt Antelope Valley projects in Kern and Los Angeles counties from SunPower Corp. (SPWR), according to a statement today. MidAmerican will pay San Jose, California-based SunPower $2 billion to $2.5 billion for the projects and a three-year contract to build them. SunPower also will operate and maintain the projects under a multi-year agreement with MidAmerican.
Buffett has been increasing investment in wind and solar farms and last year formed a MidAmerican unit to support the projects it’s acquired, including the $2.4 billion 550-megawatt Topaz solar farm in California. Chief Financial Officer Patrick Goodman said in November the company favors bets on renewable energy amid high utility valuations. California is the biggest U.S. solar market.
“Customers, investors and banks see this as a stamp of approval on SunPower,” the solar company’s President and Chief Executive Officer Tom Werner said in an interview today. “It’s a huge deal for us, roughly the size of our company.”
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