Legendary investor Warren Buffet buys major solar plant

Thursday, December 8, 2011 @ 09:12 AM
posted by rene5432

Warren Buffet, generally recognized as America's greatest investor, has decided to take a chance on solar power, offering hope and support for an industry that many had written off in recent months, according to Bloomberg.

MidAmerican Energy Holdings, a utility owned by Buffet's investment firm Berkshire Hathaway, announced recently that it has agreed to purchase a massive solar installation being constructed in southern California from Arizona-based First Solar.

Reuters reports that the power plant, known as the Topaz Solar Farm, will provide renewable electricity for as many as 160,000 homes. At 550 megawatts, the solar plant amounts to roughly half of the standard American nuclear plant.

The deal could amount to as much as $2 billion, but analysts note that it will also serve to make it easier for First Solar to find buyers for its other projects, which could make it easier for more Americans to gain access to low-cost renewable electricity.

"If nothing else, what this does is it tells you that First Solar will be able to sell what it makes, and that certainly is better than any other solar company can say at this point," Jeff Bencik, analyst at Kaufman Bros, told Reuters.

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