A Nevada utility owned by U.S. tycoon Warren Buffett has agreed upon a purchase price for solar power from a First Solar plant that might well be the cheapest electricity available anywhere in the U.S., reports Bloomberg.
NV Energy, a Nevada-based utility owned by Buffett’s Berkshire Hathaway, has agreed to pay just $0.3.87/kWh for solar electricity from the 100 MW Playa Solar 2 project being developed by U.S. thin film company First Solar.
The PPA undercuts a previous price agreed with NV Energy last year – $0.46/kWh from SunEdison’s 100 MW Boulder Solar Project – and could quite possibly be the cheapest electricity in the U.S.
“That’s probably the cheapest PPA I’ve ever seen in the U.S.,” Bloomberg Intelligence utility analyst Kit Konolige said. “It helps a lot that they’re in the Southwest where there’s good sun.”