Duke to buy power from solar plant

Duke Energy Carolinas has agreed to buy more than 16 megawatts of electricity produced by a solar farm that will be built in Davidson County.

No financial details have been released. The 20-year contract will help Duke meet the requirements of state legislation passed last year that mandates the use of renewable power sources starting in 2010.

The proposed facility could be the largest photovoltaic power source in the country when it starts operating in two years. SunEdison, the largest solar-energy company in the nation, is building the plant.

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The Maryland-based company will own and operate the facility, which is expected to provide enough power for 2,600 homes.

"Today's agreement, coupled with other significant initiatives across our company, clearly demonstrates that renewable energy has an important place in our power-generation portfolio," says Keith Trent, head of strategy, policy and regulatory issues for Duke Energy Corp. (NYSE:DUK), Duke Carolinas' parent.

SunEdison's contract is the first to arise out of a request for proposals Duke Energy Carolinas put out in April 2007 for alternative-energy sources. Duke started the bidding process before the state adopted the new energy law on renewables, but it knew the legislation was coming.

The Davidson County facility will be one of Duke's smallest commercial power sources. Its smallest plant is the Bridgewater Hydro Station on the border of McDowell and Burke counties, which has a capacity of 11.5 megawatts.