Buffett utility enters solar power sector

New York:  Warren Buffett's Mid-American Energy Holdings unit agreed to buy the $2 billion (Dh7.35 billion) Topaz project in California, branching into solar power after the industry was clobbered in stock markets around the world.

The Topaz Solar Farm in San Luis Obispo County will be one of the largest photovoltaic power plants in the world and is being developed by the seller, First Solar Inc of Tempe, Arizona, according to a joint statement yesterday from the companies. Financial terms weren't disclosed.

Buffett's Iowa-based natural gas and power supplier struck the deal after First Solar failed to get a US government loan guarantee for the project that will use First Solar's thin-film solar panels.

The manufacturer's shares have fallen 65 per cent this year.