The facility will be built on a 210-acre privately owned parcel of industrial-zoned land near Santa Teresa, about 10 miles from El Paso, Texas.
First Solar will provide engineering, construction and procurement services for the project using its thin film photovoltaic solar modules.
Power generated from the facility will be sold to El Paso Electric under a 20-year power purchase agreement.
NRG Solar plans to invest a maximum of $21m in the project over the next three years, subject to final negotiation of the financing terms and conditions.