A Spanish solar power company has signed a contract with the state of Arizona, this month, to build, own and operate what would be the largest solar power plant in the world if operating today.

The plant, scheduled to go into operation by 2011, will be located 70 miles southwest of Phoenix, and has been named Solana, meaning “a sunny place” in Spanish. The Solana Generating Station will have a total capacity of 280 megawatts, enough to power 70,000 homes while avoiding over 400,000 tons of greenhouse gases that would otherwise contribute to global warming and climate change.

The plant will consist of a series of solar panel troughs, a technology developed in Spain, and will cover a surface of around 1,900 acres. The construction of the Solana Generating Station will create about 1,500 construction jobs and employ 85 skilled full-time workers once completed. It will sell the electricity produced to Arizona Public Services over the next 30 years for a total revenue of around $4 billion.

Arizona Governor Janet Napolitano said: “This is a major milestone for Arizona in our efforts to increase the amount of renewable energy available in the United States. Arizona is leading the way in protecting our world for future generations through increasing the amount of renewable energy, combating climate change, fighting for air quality and much more. This plant will offer Arizonans a clean and efficient source of energy.”

The construction of the plant isn't quite finalized, however, as the go ahead is subject to a long-term extension of the solar investment tax credit by the U.S. Congress - something which the upcoming change of power in the White House could affect.