Gemini Solar Snags First Utility Contract

It’s official: Gemini Solar Development, a new joint venture between Suntech Power Holdings and MMA Renewable Ventures, has scored its first project.

The City of Austin on Thursday awarded Gemini a $250 million, 25-year contract to sell electricity from a 30-megawatt solar power plant. The plant, which is scheduled to begin producing electricity in 2010 to customers of city-owned Austin Energy, will be built on 350 acres of city-owned land, the city said. Gemini, based in San Francisco, will be responsible for operating and maintaining the power plant.

The deal would help the municipal utility meet its goal of obtaining 30 percent of its electricity from renewable sources by the end of 2020. Austin Energy wants the renewable energy mix to include 100 megawatts of solar power.

Suntech, a solar panel maker based in China, and MMA announced the creation of Gemini last October. Gemini’s mandate is to develop and operate large-scale solar power plants of 10 megawatts -- or more -- in capacity. The joint venture hopes to build projects and sell the solar electricity to utilities in the country, many of which have to meet state or local renewable energy mandates.

With the pending sale of MMA's solar assets to Spain's Fotowatio, Gemini is set to become a joint venture between Suntech and Fotowatio's U.S. operation. 

Gemini is one of a growing number of solar project developers targeting the utility market. First Solar, also a solar panel producer, also is making a strong bid for utility customers. The company, based in Tempe, Ariz., said earlier this week that it would buy a portfolio of unfinished solar energy projects from OptiSolar.