Sempra Gets $337 Million Guarantee for Arizona Solar Project

Sempra Energy (SRE), California’s third- largest utility, received a $337 million U.S. Energy Department loan guarantee to build a 150-megawatt solar project in Arizona.

Sempra will sell electricity from the Mesquite Solar 1 plant to California’s largest utility, PG&E Corp., under a 20- year contract, the Energy Department said today in an e-mailed statement.

The Mesquite project in Maricopa County, about 45 miles (72 kilometers) west of Phoenix, will use 800,000 multicrystalline silicon solar panels from Wuxi, China-based Suntech Power Holdings Co., San Diego-based Sempra said in February.

Lawmakers in Washington are scrutinizing the Energy Department’s program in the wake of Solyndra LLC’s Sept. 6 bankruptcy filing. The Fremont, California-based solar-panel maker received a $527 million loan guarantee.

Southern California Edison Co. is the state’s second- largest utility.

To contact the reporter on this story: Ehren Goossens in New York at egoossens1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.