Dominion Resources (NYSE:D) announced today that is has bought six California solar projects from privately held developer Recurrent Energy. All of the solar facilities are expected to reach commercial operation by early 2015.
Totaling 139 MW, this purchase provides a major boost to Dominion Resources' renewables portfolio. The energy company currently operates just 41 MW of solar in Georgia, Connecticut, and Indiana. In total, Dominion generates around 23,600 MW of electricity across 15 states.
"This investment is another important step forward for Dominion as we expand our renewable energy portfolio," said Dominion Resources, Chairman, President and CEO Thomas Farrell II in a statement today. "These projects fit well within our portfolio of regulated and long-term contracted assets."
As is the norm with large-scale solar projects, all six farms' power has already been sold via long-term power purchase agreements (PPAs). The projects are also expected to qualify for a Federal Investment Tax Credit, which will cut costs for Dominion, although no amount was given in the press release. While construction is already under way for all six plants, they won't come online until late 2014 or early 2015.
Justin Loiseau has no position in any stocks mentioned. The Motley Fool recommends Dominion Resources. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.