Southern California Edison signing PPA over 150 MW with Ram Power
Alexander Richter
31 Oct 2009
Edison International's utility Southern California Edison has agreed to buy up to 150 megawatts of power from a geothermal power plant being developed by Ram Power Inc. with federal stimulus funds in the Imperial Valley, California.
Reported from the U.S., “Edison International’s southern California utility said Thursday it has agreed to buy up to 150 megawatts of power from a geothermal power plant being developed by Ram Power Inc. with federal stimulus funds.
Ram Power will receive a $5 million federal grant to develop the plant in Imperial County, Calif., as part of $338 million in stimulus funds the U.S. Energy Department announced Thursday for geothermal power development.
Edison’s contract calls for privately held Ram Power to deliver at least 50 megawatts of geothermal power generated from underground wells in the Imperial Valley by July 2013, with the possibility that the site would yield 100 megawatts of capacity, according to a document Southern California Edison filed with the California Public Utilities Commission. The agreement includes the option for Edison to purchase the output from two potentential expansions of the project, each between 50 megawatts and 100 megawatts in expected capacity, Edison said.
Edison said the power price in the contract is below the 2008 market-based benchmark price set by the CPUC, which starts at about 12.5 cents a kilowatt- hour and can include an increase for power produced during the day when electricity demand is highest.
The geothermal projects will use mature, dual-flash technology and interconnect to the grid via a transmission line operated by the Imperial Irrigation District. Ram Power received the federal grant to use geological techniques to better understand the regional geology in the Imperial Valley, the DOE said.
In addition to Ram Power’s project, another 122 projects in 39 states received grant funding to identify and develop new geothermal fields and new exploration, and drilling technologies to reduce risks associated with development.
Edison needs permission from the CPUC to proceed with the contract. Like other California utilities, Edison is required to use renewable sources for a third of the power it sells by 2020 under rules being developed as part of California’s 2006 plan to combat climate change.”
Source: Wall Street Journal via Nasdaq.com
