A Niland, California, solar power project that may provide all of the city's daytime energy as a bank announced it has signed off a $77.4 million loan.

The North American Development Bank announced the signing of a loan for a 23-megwatt solar energy plan in the city. Imperial Valley Solar Company 1 will construct the solar plant, which will be able to power 14,000 homes.

"We are very pleased to participate in this project that will provide a cleaner energy alternative to citizens in southern California," said NADB Managing Director Geronimo Gutierrez, adding that the bank has been trying to forge a partnership with businesses in renewable energy.

The company said the project is part of the plan to comply with the state's Renewable Portfolio Standard, which will require electric service providers have about a third of their energy be renewable by 2020.

The California Public Utilities Commission said that three large electricity providers in the state saved 18 percent of their 2010 energy sales with renewable power, including Southern California Edison saving 19.4 percent.

The CPUC said the penalty for non-compliance by 2020 is a deficit of $0.05 per kilowatt-hour, up to $25 million per year.