LS Power's Centinela Solar Energy facility in California, US, will now supply energy to San Diego Gas & Electric (SDG&E) under a 20-year power-purchase agreement.
SDG&E will procure up to 130MW of energy from the proposed facility, following its completion in 2014, the company said.
The $500m Centinela project will use photovoltaic technology on a 1,150-acre site that is ideal for producing solar power due to abundant desert sunlight.
Power from the facility will be delivered to SDG&E’s service territory across the Sunrise Powerlink, a 120-mile, 500kv electric transmission line.
SDG&E's new power line is expected to carry up to 1,000MW after its comes onstream in 2012.