PG&E cancels PPA with Terra-Gen on Nevada geothermal project
Californian utility PG&E has cancelled a power purchase agreement with Arclight Capital Partners unit Terra-Gen Power for a geothermal power plant close to Reno, Nevada.
U.S. utility PG&E announces it has told regulators in the state of California that “it has terminated a geothermal-power contract with Arclight Capital Partners LLC unit Terra-Gen Power.
Terra-Gen had signed a 25-year PPA with the utility in 2010 under which the company was to build a 53 MW geothermal power plant near Reno in the state of Nevada. It was expected that the company would start delivering power under the contract in 2013. The price agreed on at the time was more than 11.25 cents per kWh as filed with the California Public Utilities Commission.
PG&E now reported that the contract had been terminated and the utility had withdrawn its previous request for approval of the contract.
Californian utilities and among them PG&E are required to source 33% of its electricity from renewable sources by 2020. Geothermal is a popular source of energy for utilities under the scheme as it is able to deliver power around the clock.
Source: Fox Business