Buffet's MidAmerican Energy To Buy First Solar's $2 Bln Power Plant

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Billionaire investor Warren Buffet's MidAmerican Energy Holdings has agreed to buy First Solar's (FSLR) Topaz Solar Farm, a 550-megawatt photovoltaic power plant in California. The companies did not disclose any financial details of the deal. Subsequent to the announcement, shares of First Solar gained over seven percent on the Nasdaq.

The Topaz project worth more than $2 billion is being built in San Luis Obispo County, California and is one of the two largest photovoltaic projects in the world. The plant will have the capacity to generate renewable energy to power about 160 thousand average California homes.

According to Greg Abel, chief executive of MidAmerican Energy, "Adding solar energy to our generation portfolio is a strategic move to invest in yet another renewable energy source...This project also demonstrates that solar energy is a commercially viable technology without the support of governmental loan guarantees and reflects the type of solar and other renewable generation that MidAmerican will continue to seek to add to its unregulated portfolio."

First Solar has agreed to construct and operate the Topaz plant for MidAmerican. Construction began in November 2011 and is expected to be complete by early 2015. Pacific Gas and Electric Co. will purchase the electricity from Topaz under a 25-year power purchase agreement, said Tempe, Arizona-based First Solar.

Berkshire's Class A shares is currently trading at $116,130, down $1,295 or 1.10%. The company's Class B shares are currently trading at $77.51, down $0.64 or 0.82%, on a volume of 1.2 million shares.

FSLR is currently trading on the Nasdaq at $49.62, up $3.52 or 7.63%, on a volume of 4.5 million, above the three-month average volume of 4 million.

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