Nevada, United States [RenewableEnergyWorld.com] Ormat Technologies Inc.announced that one of its subsidiaries has signed a 20-year power purchase agreement (PPA) with Nevada Power Company, a subsidiary of NV Energy Inc., to purchase 30 megawatts (MW) from the McGinness Hills Geothermal project, which is currently under construction.
When completed, the McGinness Hills project will increase the total output supplied from Ormat to NV Energy Inc. to approximately 135 MW, helping the utility to meet its renewable energy requirement. The renewable portfolio standard legislation requires 15 percent of all electricity generated in Nevada to be derived from new renewable energy sources by the end of 2012.
“Recent funding options and renewable legislation provide attractive alternatives for financing of new geothermal development,” said Dita Bronicki, CEO of Ormat. “The McGinness project is expected to be eligible for ITC Cash grant or for PTC, and we also expect to apply for a DOE loan guaranty for its debt financing.”
The McGinness Hills project will consist of Ormat binary energy converters that re-inject the geothermal fluid produced. The PPA is subject to various approvals including the approval of the Public Utilities Commission of Nevada and is projected to come on line in 2012.