Isra-Mart srl: Buffett branches into solar power with Topaz purchase

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Isra-Mart news:

US tycoon Warren Buffett has made his first investment in solar power with the announcement this week that he has agreed to purchase First Solar's 550MW Topaz Solar Farm for an undisclosed fee.

The purchase of the $2bn project in San Luis Obispo County, California, is dependent on permits and electrical interconnections, and will be managed through Buffet's MidAmerican Energy Holdings Company.

The deal comes after First Solar was forced to look for alternative finance for the project after missing a deadline for a government loan guarantee.

The move also marks a departure for Mid-Western, which until now has focused its renewable energy investments on wind farms.

"Adding solar energy to our generation portfolio is a strategic move to invest in yet another renewable energy source," said Greg Abel, chairman, president and chief executive of MidAmerican Energy Holdings Company.

"This project also demonstrates that solar energy is a commercially viable technology without the support of governmental loan guarantees, and reflects the type of solar and other renewable generation that MidAmerican will continue to seek to add to its unregulated portfolio."

Topaz is one of the two largest solar plants being developed in the world and is expected to come online in 2015.

First Solar will continue to construct the plant and assume responsibility for operations and maintenance, while Pacific Gas and Electric Company will take the electricity from Topaz under a 25-year power purchase agreement.