In the first energy deal of its kind, PayPal and Arizona State University have agreed to purchase some of their energy from the Red Rock Power Plant.  The power plant cost an incredible $90 million and is located roughly 35 miles south of Tucson.  The power plant can power 40 megawatts.

The goal behind this business venture for PayPal and Arizona State University is to “further their corporate and institutional renewable energy and carbon free sustainability goals,” says Arizona Public Services senior vice president Daniel Froetscher.

The power purchased by PayPal will be roughly 75% of their overall energy need.  Arizona State has used solar energy before in lesser samples, but this commitment is the largest solar energy source featured at the university.

The Red Rock Power Plant features solar panels that follow the sun from east to west as it moves across the sky.  To put the 40 megawatt capacity into understandable terms, that output is enough to power over 10,000 homes.  Of course, the sun has to be shining directly on its panels.

The plant was constructed relatively quickly, being fully finished in functional in just 15 months.  The plant is located on a 400 acre lot near the Saguaro natural-gas plant.  By using existing transmission lines and infrastructure from the natural-gas plant, the cost to build was much cheaper and the process was much more efficient. 

The model being used by PayPal and Arizona State University is said to be the “first of its kind.”  While utility grid power will still be used at both locations, this deal will effectively offset some of the traditional power use that they both use.  The basis of this plan quite possibly will lay the groundwork for more companies to get involved with renewable energy sources and using similar systems to offset utility grid power usage in their communities.