NRG invests US$10m to gain first stake in solar power

Independent power producer NRG Energy has signed a deal with start-up eSolar to build 11 solar power plants in southwest US. The agreement will lead to 500 megawatts worth of solar energy production at peak capacity, enough to power 400,000 homes, according to the companies. The first plant is expected to be operational in 2011.

NRG will invest $10 million in the venture. In return the Texas power company receives an equity stake in eSolar, development rights to three projects, and access to federal tax credits for solar development. It will also get a portfolio of PPAs to develop, build, own and operate up to 11 eSolar modular solar generating units at these sites.

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See company information on eSolar technology