Geothermal

20-Year PPA Signed for 35 MW of Geothermal Power in Nevada

Nevada Geothermal Power (NGP) signed a 20-year power purchase agreement (PPA) with Nevada Power Company, a subsidiary of Sierra Pacific Resources, for up to 35 megawatts (MW) of geothermal power to be produced from a new geothermal power plant to be built at NGP’s Blue Mountain geothermal site in northern Nevada. The power will be used by the utility to serve its customers in Nevada.

The PPA is subject to the approval of the Public Utilities Commission of Nevada and Federal Energy Regulatory Commission. The Blue Mountain project is projected to come online in 2009. Contract provisions are in place, which take into account the Production Tax Credit (PTC). The initial power plant at Blue Mountain, to be named the Faulkner 1 Power Plant, will be a state-of-the-art, zero-emission, water-cooled, binary geothermal plant with greater than 150 degree C (300 degree F) thermal water supplied by seven production wells. Geothermal water will be reinjected to maintain reservoir pressure and productivity. Further development drilling and reservoir testing is underway. “Fuel diversity is important to our customers, not only to meet the state’s goals for renewable energy standards, but to help stabilize energy prices during times of volatile energy markets,” said Tom Fair, Executive, Renewable Energy for Sierra Pacific Resources. “Geothermal power has an impressive track record of being clean and reliable and is becoming competitively priced with conventional power generation.” Brian Fairbank, President and CEO of Nevada Geothermal Power Inc., stated, “NGP’s energy will benefit Nevada with much-needed renewable resources and help Sierra Pacific in achieving the state’s renewable energy goals. We expect there will be additional MW capacity at Blue Mountain for future development and we are also exploring the growth potential of our three other geothermal sites in Nevada and Oregon.”