The agreement adds 40MW of capacity to SunPower’s existing contract for 210MW, which was executed in August 2008.

The California valley solar ranch agreement was designed to accommodate the additional 40MW capacity, eliminating the need for any amendments to SunPower’s county permit application. The solar plant will be completed in phases, with the first phase planned to begin operation in 2011.

Howard Wenger, president of utilities and power plants business group at SunPower, said: “We are thrilled to continue to advance one of the first central station solar power plants in the world with PG&E and in coordination with San Luis Obispo county.

“The California Valley Solar Ranch will generate pollution-free solar power that is competitive with new, conventional peak power. Our incremental 40MW agreement with PG&E provides more visibility into our power plant pipeline in 2011 and beyond.”