Pacific Gas and Electric Co, a unit of PG&E Corp, said it will buy 500 megawatts (MW) of solar power from units of NextEra Energy Resources and Abengoa Solar.
NextEra's proposed Genesis solar energy project will produce 250 MW in two phases, in 2013 and 2014. The remaining 250 MW will be produced by Abengoa Solar's Mojave Solar project, which will be fully functional by late 2013.
The projects will use solar thermal technology -- curved mirrors in the shape of troughs will focus solar energy onto fluid-filled tubes and the heated fluid will be used to create steam for generating electricity -- to generate renewable energy.
Financial terms of the deal were not disclosed.
Along with the recent clean solar power deal, the utility arm of PG&E Corp has signed for about 830 MW of power with independent developers.
Shares of PG&E were down about 1 percent at $41.34 Monday afternoon on the New York Stock Exchange. (Reporting by Thyagaraju Adinarayan; Editing by Gopakumar Warrier)