American Municipal Power (AMP) and Standard Energy subsidiary Standard Solar will develop up to 300MW of new solar energy generation capacity.

Under the agreement, AMP will provide power from Standard Energy to its 128 member utilities in the states of Ohio, Pennsylvania, Michigan, Virginia, Kentucky and West Virginia.

AMP will install solar electric facilities in or near participating member communities, close to the load the utilities serve to reduce complexities associated with Regional Transmission Organisation (RTO)-run markets.

Work on the first of these projects is expected to begin in 2010 and all the projects are expected to be completed within five years.

Installation sites for future projects are still being determined, the company said in a statement.