First Solar Inc. (Nasdaq: FSLR) and Roseville, Calif. announced Tuesday they have signed a power purchase agreement for 32 MW of power from the Lost Hills photovoltaic plant. First Solar is developing the solar facility in Kern County, Calif., with construction expected to begin in early 2014.
The 10-year agreement is First Solar’s first PPA with a municipal utility. The agreement, which was approved by the Roseville City Council on July 17, becomes effective in 2015. Under the agreement, Roseville will receive 100 percent of the solar project’s output for the first four years of the agreement. In 2019, when a separate PPA between First Solar and Pacific Gas and Electric (NYSE: PCG) goes into effect, Roseville will begin receiving a smaller percentage of the output.
According Roseville Electric Utility Director Michelle Bertolino, the agreement will help the city reach the state’s requirement of using 33 percent renewable energy by 2020.
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