California utility Pacific Gas & Electric has signed a deal with Alpine SunTower, LLC, a subsidiary of NRG Energy Inc.

The Alpine SunTower project will feature eSolar’s solar thermal technology and is scheduled for completion in 2012. The project will be located near Lancaster, Calif. and will produce approximately 192 gigawatt-hours of electricity each year.

The project is part of eSolar and NRG’s plans to develop up to 500 MW of solar thermal power in California and across the Southwestern United States.

Since 2002, PG&E has entered into contracts for more than 20% of its future electric power deliveries from renewable sources.

In February, NRG said it would invest $10 million in Pasadena, California-based eSolar. Earlier this month, the companies said they would build another 92 MW plant in southwestern New Mexico for El Paso Electric Co.

PG&E, BrightSource sign 1.3 GW deal

Read more: Pacific Gas & Electric