Officials say the agreement with Israel-based Solel-MSP-1 for the purchase of 553 megawatts of solar power for PG&E's customers in northern and central California makes it the world's largest single solar commitment.

The Mojave Solar Park is set to be constructed in California's Mojave Desert.

"The solar thermal project announced today is another major milestone in realizing our goal to supply 20 percent of our customers' energy needs with clean renewable energy," Fong Wan, vice president of energy procurement at PG&E, said in a company statement. "Through the agreement with Solel, we can harness the sun's climate-friendly power to provide our customers with reliable and cost-effective energy on an unprecedented scale."

Solel's patented solar thermal parabolic trough technology powers nine solar power plants in the Mojave Desert with an annual generation of 354 megawatts of electricity. Officials expect when the park is fully operational in 2011, the plant will cover up to 6,000 acres.

PG&E filed the agreement with the California Public Utilities Commission as part of a broader renewable energy portfolio. Officials say the company supplies 12 percent of its energy from renewable sources under California's Renewable Portfolio Standard program.