State Governor grants tax incentive for Ormat plant in Nevada.
Don A. Campbell (formerly Wild Rose) plant of Ormat, Nevada, U.S. (source: Ormat Technologies)
Alexander Richter
20 Mar 2014
Ormat Technologies has been granted a tax incentive for the construction of its Don A. Campbell geothermal power plant in Nevada by the State Governor's Office of Energy.
Announced by the State Governor’s Office of Energy (GOE) Ormat Technologies has been granted a tax incentive for construction of a geothermal power plant in Mineral County.
“Ormat Technologies, Inc. received the incentive for its Don A. Campbell geothermal power plant after undergoing a rigorous screening process that included meeting State and local statutes requiring the project provide employment for Nevadans, major capital investment in the State; and providing a living wage with comprehensive health benefits.
“The construction of this power plant is a result of Nevada’s commitment to the development and exportation of renewable energy,” said Governor Brian Sandoval. “The streamlined permitting and enhanced incentives are allowing projects like this to move forward, create jobs, and show energy developers that Nevada is a great place to do business.”
According to Ormat’s tax incentive application, the Don A. Campbell geothermal power plant is expected to create 138 full-time construction jobs with an average hourly wage of $41 per hour, and seven full-time operational jobs with an average wage of $25 per hour.
The tax incentive amount granted to Ormat is $12.6 million over 20 years. The total amount Nevada is projected to gain from the power plant during that time is $102 million, which includes employee wages, a capital investment worth $84 million dollars, and $8 million combined from property taxes and school support taxes. This represents an 8-to-1 return on Nevada’s investment, far exceeding the loss of revenue from the tax incentive.
Once completed, the power plant will be capable of generating 20 megawatts of electricity, which will be sold to Southern California Public Power Authority under a 20 year contract. It will utilize 13,800 acres of public land in Mineral County, and will include photovoltaic panels and related right-of-way features including a substation and switchyard facilities.
“The GOE tax incentive is a good example of government and industry working together in the development of clean, renewable energy in Nevada,” said Bob Sullivan, Vice President of Business Development at Ormat. “With the support of tax incentives, both from Nevada and federally, Ormat successfully completed many projects providing quality jobs and economic development to the State. We’ve seen great success with our geothermal power plants in rural Nevada, including the Don A. Campbell plant in Mineral County, and look forward to this opportunity for continued growth.”
According to the Geothermal Energy Association, Nevada remains second only to California in existing geothermal power capacity. Ormat’s Mineral County power plant will be the 13th the company has built in Nevada since 2005.
The GOE decision to approve Ormat’s tax incentive request highlights the GOE staff’s ability to facilitate cooperation among stakeholders, lead initiatives to stimulate economic development, and attract energy related business ventures that include site development, generation and production, and inter/intrastate transmission. ”
Source: Nevada Governor’s Office of Energy
