Duke Energy's Carolinas subsidiary has agreed to buy more than 16 megawatts of electricity produced by a solar farm that's under construction in Davidson County.
No financial details have been released. The 20-year contract will help Charlotte-based Duke Energy (NYSE: DUK) meet the requirements of state legislation passed last year that mandates the use of renewable power sources starting in 2010.
The facility could be the largest photovoltaic power source in the country when it starts operating in two years. But it will be one of Duke's smallest commercial power sources. Duke's smallest plant is the Bridgewater Hydro Station on the border of McDowell and Burke counties, which has a capacity of 11.5 megawatts.
SunEdison, the largest solar-energy company in the nation, is building the plant. 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," Keith Trent, head of strategy, policy and regulatory issues for Duke Energy, said in a statement.
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 Energy provides power to much of the western Triangle.
