PG&E Bringing Solar Power For 530,000 Homes (PCG, CVX, MS, BP, STO)

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), has entered into a series of contracts with BrightSource Energy, Inc.   While we consider most individual projects essentially as footnotes at large utilities, the size of this as far as number of homes is massive.  After a review of BrightSource, its investing backers are units of Chevron (NYSE: CVX), Morgan Stanley (NYSE: MS), BP plc (NYSE: BP), StatoilHydro (NYSE: STO), and venture capital firms.

This new agreement supersedes the agreements which PG&E executed with BrightSource in April 2008 for up to 900 MW of solar thermal power.  The new amount is for a record total of 1,310 megawatts of solar thermal power.  While this ultimately won’t begin operation until 2012, the total output is said to be enough for the annual consumption of roughly 530,000 homes.

The first of these solar power plants is sized at 110 MW and will be located in Ivanpah, California and is contracted to begin operation in 2012.

BrightSource will build and place each of its plants as quickly as permitting and infrastructure allow.   The sum total of all seven projects is expected to produce 3,666 gigawatt-hours of power each year, equal to the annual consumption of about 530,000 average homes.

JON C. OGG