San Diego Gas & Electric (SDG&E) has signed a 25-year power purchase agreement with enXco to buy the power generated from enXco's 110MW Catalina Solar plant in California, US.
EnXco will own and build the plant in two phases on 1,100 acres of land in Kern County.
The Catalina solar plant will deliver 50MW and 60MW of energy in the first phase and the second phases, which are expected to become operational by the end of 2012 and mid 2013, respectively.
The project will be connected to the statewide power grid via Southern California Edison's Tehachapi Renewable Transmission Project.
SDG&E vice-president of procurement Matt Burkhart said the plant will be capable of generating clean energy, which is sufficient to power about 35,000 homes.