SAN DIEGO, Sept. 7, 2005 (PRIMEZONE) -- San Diego Gas & Electric (SDG&E) today announced it has contracted to buy 300 megawatts (MW) of solar power, with the potential to grow to 900 MW within 10 years. The project would be one of the largest solar facilities in the world when fully constructed. The utility also announced the purchase of approximately 4 MW of energy and capacity from a local biogas landfill project.
"At SDG&E, we have pledged to tap resources like solar and biogas power to meet 20 percent of our customers' energy needs by 2010," said Edwin A. Guiles, chairman and CEO of SDG&E. "With these purchases, we continue to demonstrate our commitment to creating a balanced mix of renewable and fossil energy resources for the region."
SDG&E will purchase the solar energy from Arizona-based Stirling Energy Systems. SDG&E and Stirling have agreed to a 20-year contract to first purchase 300 MW from Stirling's SES Solar 2 facility, home to a series of Stirling solar dishes on approximately 3 square miles in Imperial Valley. SDG&E has options on two future phases that could add an additional 600 MW of renewable energy and capacity to SDG&E's resource mix. While solar energy is not always available because of environmental factors, it is generally abundant during the hottest parts of the day, making it available to meet peak demand from customers.
The Stirling solar dishes use a mirrored array to focus the sun's rays on a modern Stirling engine. Stirling engines, originally developed in 1816, have four sealed cylinders containing hydrogen or helium. When a cylinder is heated by the sun, the gas expands and pushes a piston; when it cools, the piston retreats. The mechanical action turns a generator and produces electricity. Because the cylinders are sealed, Stirling engines do not produce emissions.
"This large-scale application of SES technology will provide clean, renewable solar energy to SDG&E customers," said Bruce Osborn, chief executive officer of Stirling Energy Systems. "We believe this is a truly historic moment for the solar energy industry, and we are pleased to be teaming with a progressive and creative company like SDG&E."
Phase One will supply about 3.7 percent toward achieving the 20 percent goal by 2010, with subsequent phases potentially providing similar percentage increases.
The Stirling projects will require additional transmission facilities to be built to bring the energy to SDG&E customers.
SDG&E also is purchasing approximately 4 MW from a local landfill gas facility. The producer, known as Covanta, is a 3.75 MW landfill gas facility in the San Diego region that will provide power under a 10-year contract. The California Public Utilities Commission (CPUC) must approve the contracts.
"This project is a good example of SDG&E's commitment to meeting a 20 percent renewable requirement by 2010," said state Sen. Denise Moreno Ducheny (D-San Diego). "The Imperial Valley is fast becoming one of the nation's leading producers of renewable energy. This agreement develops a greater sustainable regional energy source, which means cleaner air for the region."
Last year, the CPUC approved SDG&E's long-term energy resource plan, which relies on a balanced mix of resources to meet the growing energy needs of San Diego. That mix includes increased emphasis on energy efficiency, more renewable energy resources, and additional baseload generation plants and transmission capacity. SDG&E continues to aggressively pursue other renewable energy resources to fulfill its goal of supplying 20 percent of its customers' needs from sources such as wind, solar and biomass by 2010.
SDG&E is a regulated public utility that provides safe and reliable energy service to 3.3 million consumers through 1.3 million electric meters and more than 800,000 natural gas meters in San Diego and southern Orange counties. The utility's area spans 4,100 square miles. Exceptional customer service is a priority of SDG&E as it seeks to enhance the region's quality of life. SDG&E is a regulated subsidiary of Sempra Energy (NYSE:SRE). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company. To learn more, go to www.sdge.com.