MidAmerican Energy has signed definitive agreements with First Solar to acquire the Topaz Solar Farm in the US state of California.

The 550MW photovoltaic (PV) power plant, valued at about $2bn, is being built in San Luis Obispo County, will have the capacity to generate enough renewable energy to power about 160,000 average California homes.

First Solar has agreed to build, operate and maintain the Topaz project for MidAmerican.

The Topaz project will incorporate First Solar’s advanced thin-film PV modules, which generate electricity with no emissions, waste or water use and have the smallest carbon footprint of any PV technology.

MidAmerican Energy chairman, president and CEO Greg Abel said as energy needs continue to increase, the Topaz project will allow MidAmerican to produce renewable energy for thousands of Californians.

Construction started in last month and is expected to be complete by early 2015.

Pacific Gas and Electric Company will purchase the electricity from Topaz under a 25-year power purchase agreement, helping California to meet its mandate to generate 33 percent of its power from renewable sources by 2020.

Electricity generated from the Topaz project will displace about 377,000 metric tons of CO2 per year, the equivalent of taking about 73,000 cars off the road.

MidAmerican Energy is a provider of energy services.