WILMINGTON, N.C., Aug. 22 /PRNewswire-FirstCall/ -- Progress Energy
Carolinas (NYSE: PGN) and SunEdison have signed an agreement under which
SunEdison will build, own and operate a 1.2-megawatt solar photovoltaic (PV)
plant on the site of the Progress Energy L.V. Sutton Plant near Wilmington and
sell the energy produced to the utility for distribution to customers.
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SunEdison will build the solar PV array on about 10 acres at the existing
power plant site, located off Highway 421. Progress Energy will lease the land
to SunEdison for 20 years, the term of the power-purchase agreement.
The plant is the second megawatt-sized solar project announced this
summer. In June, software company SAS announced it will build a 1-MW solar PV
array at its Cary, N.C., campus and sell the output under a long-term contract
to Progress Energy Carolinas.
Both announced projects are expected to be producing electricity by late
this year. Meanwhile, the company is evaluating additional renewable energy
projects, as well as potential opportunities related to plug-in hybrid
electric vehicles and other energy technologies.
'Solar power is an important part of our balanced energy strategy for
meeting the region's needs,' said Lloyd Yates, CEO and president of Progress
Energy Carolinas. 'We are continuing to pursue cost-effective solar and other
renewable opportunities aggressively, and we expect to announce additional
renewable energy investments soon. Meanwhile, we're promoting increased energy
efficiency and working to ensure that we have state-of-the-art power plants
and infrastructure. We will continue to look for new, innovative ways to help
meet our customers' needs reliably, affordably and in an environmentally sound
manner.'
SunEdison proposed the latest solar PV project in response to Progress
Energy's request for renewable energy proposals, issued in November. The
open-ended request is part of Progress Energy's plan to meet the requirements
of North Carolina's energy law, passed in 2007.
The law established a renewable and energy-efficiency portfolio standard,
which requires utilities to provide a portion of their energy sales using
renewable energy sources and energy efficiency. For Progress Energy, that
portion grows from 3 percent of total energy sales in 2012 to 12.5 percent in
2021. For solar-generated energy, the requirement begins in 2010.
