Duke Energy Buys Ariz. Solar Plants

By Charlotte Business Journal

Duke Energy Corp. has agreed to sell the power produced by two large solar farms in Arizona to Arizona Public Service Co.

Duke Energy Renewables, a subsidiary of Charlotte-based Duke Energy (NYSE:DUK), bought the solar farms from Recurrent Energy in August.

Arizona Public Service will buy their output from Duke for 25 years.

The Ajo Solar Project can generate almost 5 megawatts of electricity. The project achieved commercial operation in late September. The Bagdad Solar Project is expected to generate 15 megawatts of electricity after it begins operations this month.

The farms and purchase contracts put Duke Energy “in a position to help Arizona’s largest and longest-serving energy-service provider deliver even more affordable, zero-emission renewable power to its customers,” says Greg Wolf, president at Duke Energy Renewables. “For Duke Energy, this landmark deal doubles our portfolio of commercial solar projects in operation and instantly expands our footprint to the western United States.”

Financial terms were not disclosed.

International engineering and project-management company AMEC designed and built the farms. AMEC will operate and maintain the sites under the terms of five-year service agreements with Duke Energy Renewables.

Duke Energy Renewables owns seven other solar facilities in operation. The company is building a 5-megawatt facility in Murfreesboro, N.C.

Duke Energy Renewables also owns more than 1,000 megawatts of electric-generating capacity at 10 U.S. wind farms. Since 2007, Duke has invested more than $1.75 billion in wind and solar facilities.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/charlotte/news/2011/12/12/duke-energy-buys-ariz-solar-plants.html?ana=thestreet

>To order reprints of this article, click here: Reprints