Desert Hot Springs, Calif., July 28, 2011 — Competitive Power Ventures, GE Energy Financial Services and Diamond Generating Corp. broke ground on their co-owned, gas-fired 800-MW CPV Sentinel Energy Center in Riverside County, California.
The $900 million CPV Sentinel power plant is located near Desert Hot Springs, five miles northwest of Palm Springs. It is expected to create 300 construction jobs with a $40 million payroll, along with nearly 400 indirect jobs with a $15 million payroll.
The project will provide an estimated $30 million in sales tax during construction and an estimated $6.4 million in annual property taxes once operational in the summer of 2013.
Gemma Power Systems California, Inc. is the general contractor overseeing construction of the project. CPV Sentinel will supply power to the Coachella Valley and Los Angeles Basin under a long-term power purchase agreement with Southern California Edison, an Edison International company. CPV will manage the project, while DGC will serve as the plant's operator.
Using eight of GE's efficient, quick-starting LMS100 gas turbines, the CPV Sentinel power plant will help prevent blackouts during extremely hot weather by providing peak power on demand.
Given CPV Sentinel's close proximity to 600 MW of wind farms, the project also will support California in meeting its goal of generating 33 percent of its power from renewable sources by 2020 by facilitating the integration of wind and solar power into the electric grid. When it becomes operational, the project will be able to power about 640,000 homes.
CPV, the managing member and developer, owns 25 percent of the project, while DGC and GE own 50 percent and 25 percent, respectively.