US Geothermal’s subsidiary USG Nevada has signed a power purchase agreement (PPA) with NV Energy for the purchase of up to 19.9MW of renewable energy from the San Emidio Geothermal Project located in Nevada, US.

The 25-year PPA also considers the construction of two electric power generation units at San Emidio.

The Unit 1 power generation plant is expected to commence operations in fourth quarter of 2011 to replace the 3.6MW plant at San Emidio.

The Unit 2 power generation plant is scheduled for commercial operations in second quarter of 2013, subject to the successful development of the well.

After the completion of sufficient drilling the company is also planning to develop two additional Unit 3 and 4 power generating plants.

The PPA is subject to approval from Public Utilities Commission of Nevada, which is supposed to be submitted by NV Energy within 100 days.