Energy Source secures PPA for 49 MW Hudson Ranch II project

Hudson Ranch I, construction site at the Salton Sea, California (source: EnergySource)

Alexander Richter 12 Dec 2011

Reported today, EnergySource the developer of the Hudson Ranch II project in the Imperial Valley, California has secured a 49 MW Power Purchase Agreement (PPA) with Salt River Power (SRP).

“The proposed geothermal generating station will be owned and operated by Hudson Ranch Power II LLC, and will be constructed in the Imperial Valley near the Salton Sea. The Salton Sea geothermal resource is one of the world’s hottest and most prolific for the production of energy.

In 2007, SRP executed an agreement to purchase 49 MW of geothermal energy from Hudson Ranch I. That project is nearly complete and is expected to begin producing energy in February. This second 30-year agreement is for SRP to purchase power beginning in mid-2014, when the plant is completed. SRP will arrange transmission of the energy from the point of delivery to Arizona.

Under SRP’s Sustainable Portfolio goals, SRP must secure sustainable and renewable resources to meet 20 percent of its retail load by the year 2020. Currently SRP’s sustainable portfolio, which consists of energy-conservation programs and renewable-energy sources, including solar, wind, landfill gas, geothermal and low-head hydro, is a little more than 7 percent.

Hudson Ranch Power II is owned by EnergySource, a renewable-energy company focused on the Salton Sea geothermal resource. EnergySource has a team of 19 professionals with experience in resource acquisition, geology, drilling, engineering, construction, plant operations and new project development. A sister company, Hudson Ranch Energy Services, will operate both Hudson Ranch I and II.

SRP is the largest provider of electricity to the greater Phoenix area, serving nearly 950,000 electric customers.”

Source: Press Release by SRP