Sumitomo acquires 25 per cent stake in $2.3 billion US solar farm

• 12 years ago (2012-10-04)
• Junior Isles

Asia 892 North America 1021 Renewables 776

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Japan’s Sumitomo Corp. has spent $200 million to acquire a 25 per cent stake in Desert Sunlight Investment Holdings LLC, the operator of a $2.3 billion solar project in California, USA.

When completed, the Desert Sunlight Solar Farm project will be solar generation facility capable of generating 550 MW of electricity set on 165 000 square kilometres of land near Palm Springs, California.

With some 9 million panels, the Desert Sunlight farm is the largest solar PV facility approved for construction on US public land, according to the US Department of the Interior.

Sumitomo own a 25 per cent stake in the operation company, with the remainder of the firm owned by US based companies, GE Energy Financial Services and NextEra Energy Resources.

The electricity produced by the solar farm, scheduled for completion in spring 2015, will be sold to Southern California Edison and Pacific Gas & Electric Co., beginning in the second half of 2013.

This latest move follows Sumitomo entry earlier this year into the US wind power business, likewise part of its stated aim to expand its portfolio of renewable energy operations.

This is Sumitomo's first investment in a US solar project and "will expand Sumitomo's renewable energy portfolio, which already includes over 1800 MW in projects across the United States," Sumitomo said in a statement.