San Diego Gas & Electric signs power purchase agreements with Silverado Power subsidiaries

San Diego Gas & Electric (SDG&E) has signed two new power purchase agreements (PPAs) for 15MW solar energy with Silverado Power subsidiaries Western Antelope Dry Ranch and Victor Mesa Linda B.

The solar projects which will be located in Lancaster and Victorville in California, US will generate 10MW and 5MW of solar energy respectively, to meet the power needs of 3,225 homes in the region.

SDG&E senior vice president Power Supply James P. Avery said, "These contracts add diversity to SDG&E’s ever-growing renewable energy portfolio that includes wind power, biomass, biogas and geothermal energy."

The construction of these two projects is expected to start in the first quarter of the next year and continue through the final quarter of 2013.

Silverado Power chief operating officer Hans Isern said "Our collaboration with local communities and investor-owned utilities results in sustainable projects that create jobs, reduce greenhouse gas emissions and help meet the increasing demand for clean, renewable energy."

Under California’s renewable portfolio standard programme, investor-owned utilities are required to procure 33% of their power from renewable resources by 2020.

SDG&E, a public utility has signed the two PPAs for 20 years and is required to get approval from the California Public Utilities Commission.