Solar power plant construction starts

Business Week

JUN. 6 1:35 P.M. ET Three companies, General Electric Co., PowerLight Corp. and Catavento, on Tuesday began building the world's largest solar power plant.

The 11-megawatt plant, comprising 52,000 photovoltaic modules, is being built in Serpa, Portugal, one of Europe's sunniest areas located 124 miles southeast of Lisbon.

The 61 million euro ($78.5 million) plant is expected to be completed by January 2007.

"The Serpa solar power project, along with other renewable energy initiatives, helps lay the foundation for Portugal's energy future," said Piero Dal Maso, co-CEO of Catavento, a Portuguese renewable energy company. "The project takes maximum advantage of the excellent environmental conditions in Portugal for solar power."

Co-CEO Sergio Costa added: "Serpa must not be a single case but a true starting point for solar power in Portugal."

The plant will produce enough electricity to supply 8,000 homes and save more than 30,000 tons in greenhouse gas emissions when compared to fossil fuels.

"For GE, its a major step in our growth in renewable energy and our ecomagination initiative to help overcome environmental challenges," Mario Armero, president of GE Portugal and GE Spain, said at a groundbreaking ceremony in Serpa.

PowerLight Corp., which is based in Berkeley, Calif., makes solar-energy systems. GE is based in Fairfield, Conn.