The California Public Utilities Commission (CPUC) has approved a proposal by Spanish engineering company Abengoa to sell its electricity output from its 250MW solar-thermal project in California.

The output will be sold to PG&E Corp, but the terms of the deal have not been disclosed.

The US-based project is being supported by a 1.2bn loan guarantee from the US Energy Department, and will commence operations in 2014.

Abengoa submitted the contract for approval in October 2009, reports Bloomberg.