MidAmerican Solar and SunPower (NASDAQ: SPWR ) announced Wednesday that MidAmerican has acquired 579 megawatts worth of solar projects from SunPower.
MidAmerican Solar is a subsidiary of MidAmerican Renewables, which is a subsidiary of MidAmerican Energy Holdings, which is a subsidiary of Warren Buffett's Berkshire Hathaway (NYSE: BRK-A ) (NYSE: BRK-B )
The projects in question, the Antelope Valley Solar Projects, consist of two co-located projects in Kern and Los Angeles counties in California covering a combined 3,230 acres. MidAmerican notes that together, they constitute "the largest permitted solar photovoltaic power development in the world," using SunPower's own branded equipment to produce solar power.
According to a filing with the SEC, MidAmerican will be paying between $2 billion and $2.5 billion to Sunpower for the engineering, procurement, and construction contracts and membership interest purchase agreements.
When completed at the end of 2015 the new holding intends to sell its solar power to Southern California Edison under a pair of long-term power purchase contracts already approved by the California Public Utilities Commission. According to U.S. Environmental Protection Agency estimates, the project is expected to offset more than 775,000 tons of carbon dioxide emissions per year, equivalent to the pollution produced by almost 3 million cars, the companies said.
This is the third major solar investment by MidAmerican, which also owns the 550-megawatt Topaz Solar Farms in San Luis Obispo County, Calif., and owns a 49% interest in the 290-megawatt Agua Caliente solar project in Yuma County, Ariz.