• 9 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes The EU Loses The Principles On Which It Was Built
  • 19 minutes Batteries Could Be a Small Dotcom-Style Bubble
  • 54 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 7 hours Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 2 hours How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 6 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 5 mins Starvation, horror in Venezuela
  • 7 hours China goes against US natural gas
  • 7 hours Western Canada Select price continues to sink
  • 6 hours Corporations Are Buying More Renewables Than Ever
  • 4 hours Are Trump's steel tariffs working? Seems they are!
  • 15 mins The Discount Airline Model Is Coming for Europe’s Railways
  • 4 hours Is NAFTA dead? Or near breakthrough?
  • 5 hours China still to keep Iran oil flowing amid U.S. sanctions
  • 5 hours Saudi Fund Wants to Take Tesla Private?
Is Deepwater Drilling More Profitable Than Shale?

Is Deepwater Drilling More Profitable Than Shale?

Conventional wisdom in oil markets…

Warren Buffet Buys Antelope Valley Solar Projects for $2.5 Billion

MidAmerican Energy Holding Co., the energy utility owned by Warrant Buffett’s Berkshire Hathaway, has agreed to pay SunPower Corp. between $2-2.5 billion for the design, development, and installation of the 579MW Antelope Valley solar projects.

The two solar installations that make up the 579MW project have been described as the largest photovoltaic development in the world. Construction is expected to begin this quarter and be completed by the end of 2015.

Related Article: Solar and Big Oil Join Forces in Middle East

The small profit margins expected from the SunPower facility mean that it has struggled to find financial backing, especially from banks. Chief Executive Tom Werner believes that Buffett’s involvement will now make SunPower more credit worthy. However Raymond James, an analyst at Marshall Adkins, has believes that little change to the credit rating will be seen, stating that the takeover by MidAmerican Energy Holding “does not alter the fact that SunPower retains a markedly high-cost structure and razor-thin margins in the context of a massively oversupplied market.”

Warren Buffett is renowned for his support of renewable energy and this purchase follows other large deals that MidAmerican Energy has made in the past couple of years. In late 2011 it bought a 49 percent stake in a 290MW solar power plant in Arizona from NRG Energy Inc, and the 550MW Topaz Solar Farm in California from First Solar.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • Todd Krejci on January 05 2013 said:
    This seems like it could be a good long term play.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News