UPDATE: Exelon, SunPower To Develop Solar Plant In Chicago
22 April 2009 - 4:21PM
Dow Jones News
Exelon Corp. (EXC) and SunPower Corp. (SPWRA) said Wednesday
that the companies will develop the largest urban solar power plant
in the U.S. at a former industrial site on Chicago's South
Side.
The Exelon deal comes as several utilities expand their solar
energy portfolios in an effort to meet state renewable energy
requirements and prepare for an expected federal limit on carbon
dioxide emissions from power plants that run on fossil fuels.
Public Service Electric & Gas Co. (PEG) said in February that
it would spend $800 million over the next five years on solar power
projects in New Jersey.
The 10-megawatt Exelon plant, scheduled for completion by the
end of this year, is contingent on Exelon receiving a loan
guarantee under recently passed federal economic stimulus
legislation. Exelon is seeking a loan for up to 80% of the project
cost, which the company estimates to be about $60 million.
Exelon is "always considering renewables as a way to add
low-carbon electricity to the marketplace," Exelon spokesman Paul
Elsberg said. He declined to say whether the company has other
solar projects in the pipeline.
Chicago-based Exelon will own and operate the plant and market
the Solar Renewable Energy Certificates it generates. The
certificates are credits for producing a kilowatt-hour of energy
from solar power, and can be sold to utilities and other power
generators to help them meet state renewable energy
requirements.
SunPower, a San Jose, Calif.-based solar panel manufacturer,
will design, produce and install the solar plant. The plant will
generate enough power to meet the annual energy requirements of
about 1,200 to 1,500 homes and will displace about 31.2 million
pounds of greenhouse gas emissions annually, Exelon and SunPower
said.
-By Christine Buurma, Dow Jones Newswires; 201-938-2061;
christine.buurma@dowjones.com