Sempra in Big Energy Contract

Sempra Energy’s (SRE - Analyst Report) subsidiary, San Diego Gas & Electric (SDG&E) and a subsidiary of CSOLAR Development, LLC entered into a contract to build a 150 megawatts (MW) solar power plant. The power plant would be built at the Imperial Solar Energy Center (ISEC) West's proposed 1,057-acre solar energy facility near El Centro, California.

Earlier in February 2011, CSOLAR Development, LLC had submitted a right-of-way (ROW) application to construct, operate, and maintain a 230 kV transmission line. The action includes application for the construction and operation of the 250 Megawatt Imperial Solar Energy Center West solar energy facility and construction and operation of the electrical transmission lines that would connect the solar facility to the existing Imperial Valley substation. Sempra Energy will utilize Concentrix concentrated photovoltaic (CPV) modules from Soitec SA.

Soitec will build a new factory with an annual production capacity of 200 MW in San Diego to manufacture its proprietary CPV modules for catering to the above project. Soitec's delivery of the CPV systems to the ISEC West solar power plant will begin in early 2013 and end in 2015. The new manufacturing facility will also be able to supply other utility-scale solar power projects throughout the United States' desert southwest. At full capacity, Soitec's San Diego area operations will generate up to 450 direct jobs and more than 1,000 indirect jobs.

Sempra Energy’s new solar project if approved by the California Public Utilities Commission will connect with SDG&E's Imperial Valley substation. The electricity generated will be transmitted over the utility's Sunrise Powerlink transmission line. Sunrise Powerlink transmission line is under construction and is expected to be complete in 2012.

Sempra Energy is focused on the project owing to its commitment to obtain 33.0% of its power from renewable sources by 2020. The project will produce enough renewable solar energy to serve more than 55,000 households a year and will generate approximately 300 construction jobs in the Imperial Valley during the two-year construction period.

Sempra Energy has a diversified basket of businesses that protects its operations from regulatory rate risks in comparison to its peers. This is supported by stable utility earnings, steady progress at its LNG terminals, the Sunrise Powerlink transmission line, ongoing installations of smart meter, and renewable power projects in the Pacific Southwest. The company presently retains a short-term Zacks #2 Rank (Buy). We have a long-term Neutral recommendation on the stock.

Based in southern California, Sempra Energy is an energy services holding company involved in the sale, distribution, storage, and transportation of electricity and natural gas.

Author: Zhejiang Haining Tiange Solar Energy Science Technology Co., Ltd.
website: www.sunnyrainsolar.com
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