Shares in First Solar, Inc.(NASDAQ:FSLR) rose another 2 percent in early deals on Wednesday following 5% gain in the previous trading session on news filtered into the market that Pacific Gas & Electric Co would buy the electricity generated by two of First Solar's plants in California.
First Solar is developing the two new solar farms that will have a combined generating capacity of 72 megawatts.
Both the projects together are expected to create about 600 jobs during the busy construction season and also generate enough electricity for 24,000 houses in California. This would offset approximately 45,000 metric tons of carbon dioxide annually--the equivalent of taking about 8,900 cars off the road each year.
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Project construction could start in 2013 as soon as the development process is complete, depending on plans of the projects' eventual owners.
"We are very pleased to add these projects to PG&E's solar portfolio, helping it and California reach their renewable energy goals," said Brian Kunz, First Solar Vice President of Project Development. "Grid-friendly utility-scale power plants from First Solar are readily integrated into the electrical infrastructure."
The power purchase agreements--each with a delivery term beginning in 2019--are subject to approval by the California Public Utilities Commission, whose decision is expected in the first half of 2013.
Yesterday, Shares of First Solar rose to $21.86, a gain of 5.15 percent, in morning trading. The company's shares plummeted from a high of $93.64 in September of 2011 to $11.77 on June 1, 2012. First Solar's shares set a more recent high of $25.70 on August 28.