AES told the stock exchange that the CPA had nominated three companies, one each from the USA, Germany and Australia (AES) as its power conditioning suppliers.

"AES has been steadily developing its position in North America and is looking to engage in the California renewable energy opportunities," said AES managing director, Mr Stephen Phillips.

"This selection will lead to increased market recognition of AES and the development of commercial opportunities."

AES said it is looking to enhance its market position by investing in achieving accreditation to a range of US standards. Based on successful accreditation, AES believes that its US order book could be strengthened by up to $5 million in the next twelve months with the possibility of further growth beyond that.

Last year, the California Legislature authorized the CPA to issue up to $5 billion in revenue bonds to solve state electricity problems. The California Governor then stated his goal was that by 2006, about 17 percent of electricity purchases should be from renewable energy resources.

AES said the intent of the CPA through this pre-selection and bond-financing arrangement was to stimulate the installation of up to 160 MW of solar power systems with a market value of $US800 million, with the minimum target being 40 MW.