Southern California Edison Signs Solar Power Contract

Edison International's (EIX) Southern California Edison unit, the largest electric utility in California and a major U.S. purchaser of solar energy power, has contracted with privately-held BrightSource Energy for 1,300 megawatts of solar power, or enough to serve nearly 845,000 homes.

The first of the solar power plants could be operating within four years, said the utility, which serves a population of more than 13 million, signed two contracts on Tuesday for almost 2,000 gigawatt-hours of wind power. Terms of the agreement were not disclosed.

The deal comes as the solar-power industry has become increasingly pessimistic about the sector's short-term future, with many in the industry cutting production or lowering their outlook to reflect lower demand. Clean energy's momentum is also being stalled by the financial meltdown and lower oil and gas prices. Still, longer term the companies are expected to profit as governments seek to cut greenhouse gas emissions.

Meanwhile, demand for solar power in California is soaring despite the economic downturn, according to a report state regulators issued in late January. California homeowners, businesses and local government agencies installed 158 megawatts of solar panels in 2008, double the amount installed the previous year, the California Public Utilities Commission said.

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