ASHEVILLE, N.C., Oct. 27 /PRNewswire-FirstCall/ -- Three Carolinas companies have partnered to bring the first large-scale solar energy project to Western North Carolina. Progress Energy Carolinas (NYSE: PGN) has signed an agreement with FLS Energy to purchase the output from a 1-megawatt (MW) solar power plant on the site of a now-closed landfill in Haywood County owned by Evergreen Packaging, Inc. (formerly Blue Ridge Paper Products Inc). FLS Energy, based in Black Mountain, will build, own and operate the solar photovoltaic (PV) array and sell the energy produced to the utility for distribution to customers.

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"Progress Energy is moving forward aggressively in pursuing renewable energy as part of a balanced strategy for meeting the region's growing energy needs reliably, affordably and in an environmentally responsible fashion," said Robert Sipes, vice president for Progress Energy Carolinas' western N.C. region. "This is the third megawatt-sized solar project we have signed this year. It combines an important emerging technology with an outstanding location, and we're pleased to be part of it. We're pursuing technology, partnerships and other agreements to expand the use of renewable energy in North Carolina. Innovative projects such as this one will be critical in meeting our state's objectives for renewable energy in the future."

The FLS Energy solar farm will include 3,288 PV panels installed on about seven acres at the closed landfill. Evergreen Packaging, located near Canton, will lease the land to FLS Energy for 20 years, the term of the power-purchase agreement. This PV array is expected to start producing electricity in the spring of 2009.

FLS Energy President Michael Shore said, "Solar energy is a critical component in our energy future. FLS Energy is extremely proud to be at the forefront of commercial solar development in our region. Expanding solar energy will improve our nation's energy security and reduce global warming pollution."

"Energy costs and environmental concerns are critical to every business," said Derric Brown, the director of Health and Environmental Safety for Evergreen Packaging. "We are happy to make this site available for a project that is good for Western North Carolina now and in the future. It is an excellent re-use of a closed landfill site."

A PV array is a collection of solar cells, each consisting of thin layers of semiconducting material (silicon) that generate electricity when exposed to sunlight. This 1-MW array is expected to produce more than 1.6 million kilowatt-hours of electricity over the course of a year.

An average home in Progress Energy Carolinas' service area uses about 14,200 kWh in a year. In addition to its investment in solar power generation, Progress Energy will be testing battery storage technology so that solar power generated when the sun is shining can be stored and used at other times when customers need it.

FLS Energy proposed the latest solar PV project in response to Progress Energy Carolinas' request for renewable energy proposals, which is part of the company's plan to meet the requirements of Senate Bill 3, North Carolina's clean energy law signed into law by Governor Easley in August of 2007. The law established a renewable and energy-efficiency portfolio standard, which requires utilities to provide a portion of their energy sales using renewable energy sources and energy efficiency. For Progress Energy Carolinas, that portion grows from 3 percent of total energy sales in 2012 to 12.5 percent in 2021. For solar-generated energy, the requirement begins in 2010.

About FLS Energy

FLS Energy's mission is to establish solar as a mainstream technology through the development, design and installation of quality, clean energy systems for both businesses and homeowners. For more information about FLS Energy, please visit www.flsenergy.com .

About Evergreen Packaging

Evergreen Packaging, Inc., formerly Blue Ridge Paper Products, Inc., is a world leader in beverage packing solutions, publication and converting papers. It has operated in Western North Carolina for 100 years. For more information about Evergreen Packaging, Inc., please visit www.evergreenpackaging.com .

About Progress Energy

Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 energy company with more than 21,000 megawatts of generation capacity and $9 billion in annual revenues. The company will observe a century of operation in 2008. Progress Energy includes two major utilities that serve 3.1 million customers in the Carolinas and Florida. Progress Energy is the 2006 recipient of the Edison Electric Institute's Edison Award, the industry's highest honor, in recognition of its operational excellence. The company also is the first utility to receive the prestigious J.D. Power and Associates Founder's Award for customer service. Progress Energy serves two growing areas of the country, and the company is pursuing a balanced approach to meeting the future energy needs of the region. That balance includes increased energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. For more information about Progress Energy, visit the company's Web site at www.progress-energy.com .

SOURCE Progress Energy