US Geothermal’s wholly owned subsidiary, USG Nevada, has announced the start of commercial operations at the new 11.75 gross (8.6 net) MW San Emidio Unit I power plant in Nevada, US.
The company had signed a 25-year power purchase agreement with NV Energy, which will buy electrical energy from the new power plant for $89.75 per megawatt hour (MWH), subject to a 1% annual escalator.
US Geothermal CEO, Daniel Kunz, said the San Emidio project is a major milestone for the company.
"The San Emidio Unit I project was beset with delays that were necessary to ensure that our contractor delivered a fully functional power plant," said Kunz.
"This new plant is now operating and delivering power on a commercial basis."
The plant may generate an average of approximately 71,500 MWHs of electrical power annually.
USG Nevada will apply to receive an ITC cash grant of approximately $11m for the project, to repay an existing $7.5m bridge loan and for general corporate purposes.
The new power plant replaces an existing facility which used to generate approximately 23,000 MWH annually using the same production and injection wells.
Image: Electrical energy from the new power plant is now being sold to NV Energy. Photo: courtesy of US Geothermal.
