The deal, announced today, is said to be subject to U.S. Department of Energy (DOE) approval and other customary closing conditions.
Expected to be completed in 2014 by First Solar, the project is located in Yuma County, Arizona. Costing a total of US$1.8 billion, DOE awarded a $967 million loan guarantee to boost development, and Pacific Gas and Electric has signed a long-term power purchase agreement.
Commenting on the news, Greg Abel, chairman, president and CEO of MidAmerican Energy said, "We are aggressively pursuing opportunities to expand our presence in the renewable energy sector, and the Agua Caliente project is another important step toward that goal."
The news represents MidAmerican Energys second solar endeavor. At the start of the month, the company also bought First Solars 550 MW Topaz Solar Project.