Solars Move Higher as Buffett Makes ~$2B Investment
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Solars are on the move higher Wednesday following positive sentiment in the sector stemming from a deal between MidAmerican Energy Holdings and SunPower (Nasdaq: SPWR) over the world's largest solar farm.
According to a release earlier, Warren Buffett's MidAmerican Renewables will acquire the 579-megawatt Antelope Valley Solar Projects (AVSP) from SunPower. AVSP consists of two co-located projects in Kern and Los Angeles Counties in California.
Under engineering, procurement and construction contracts (EPC Contracts), SunPower agrees to provide engineering, design, procurement, installation, construction, commissioning and warranty services for the AVSP 1 Project and the AVSP 2 Project, including all balance-of-plant systems. The contract price for each EPC Contract is a fixed price and will be payable to SunPower based upon a pre-agreed milestone schedule tied to the approximately 3-year construction period of each project. The aggregate consideration payable by MidAmerican under the EPC Contracts and the MIPAs is an agreed amount between $2.0 billion and $2.5 billion. Payments are subject to an agreed amount of retention, to be released to SunPower at final completion.
To read more from the 8-K filing, click here.
SunPower is up 6.7 percent today. Other notables on the move include Suntech Power (NYSE: STP), Yingli Green Energy (NYSE: YGE), JA Solar (Nasdaq: JASO), First Solar (Nasdaq: FSLR), and others.
According to a release earlier, Warren Buffett's MidAmerican Renewables will acquire the 579-megawatt Antelope Valley Solar Projects (AVSP) from SunPower. AVSP consists of two co-located projects in Kern and Los Angeles Counties in California.
Under engineering, procurement and construction contracts (EPC Contracts), SunPower agrees to provide engineering, design, procurement, installation, construction, commissioning and warranty services for the AVSP 1 Project and the AVSP 2 Project, including all balance-of-plant systems. The contract price for each EPC Contract is a fixed price and will be payable to SunPower based upon a pre-agreed milestone schedule tied to the approximately 3-year construction period of each project. The aggregate consideration payable by MidAmerican under the EPC Contracts and the MIPAs is an agreed amount between $2.0 billion and $2.5 billion. Payments are subject to an agreed amount of retention, to be released to SunPower at final completion.
To read more from the 8-K filing, click here.
SunPower is up 6.7 percent today. Other notables on the move include Suntech Power (NYSE: STP), Yingli Green Energy (NYSE: YGE), JA Solar (Nasdaq: JASO), First Solar (Nasdaq: FSLR), and others.
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