Global renewable energy company Gestamp Solar and California-based 8minutenergy Renewables have agreed to sell power from the Calipatria Solar Farm to San Diego Gas & Electric (SDG&E).

The 20-year power purchase agreement stipulates that the utility-scale solar facility in California will supply 20MW of renewable energy to SDG&E by early 2015

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SDG&E electric and fuel procurement vice president Matt Burkhart commented, "SDG&E has made a concerted effort to increase the number of diverse-owned suppliers we do business with in electric procurement resulting in our making significant strides this past year."

Gestamp and 70SM1 8ME, a subsidiary of 8minutenergy, will together develop and build the Calipatria Solar Farm project in Imperial Valley spread across 160 acres of low-productivity farmland.

Gestamp Solar CEO Jorge Barredo noted that the company is prepared to lead the next stages in the project’s development and to transmit power.

The solar plant is expected to be operational by late-2014 and is estimated to reduce nearly 54,000 metric tons of carbon dioxide emissions a year.

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The power purchase contract with SDG&E awaits the approval of the California Public Utilities Commission.

8minutenergy chief executive officer Martin Hermann stated, "The solar farm’s annual production of approximately 48 million kilowatt hours (kWhs) of electricity will produce enough renewable solar energy to serve 9,000 households in SDG&E’s service territory."

This project will also contribute to SDG&E’s goal of helping the state meet its 33 percent renewable power targets.