geothermal

California authority signs first PPA for geothermal energy

The Marin Energy Authority has signed a Power Purchase Agreement with Calpine Energy Services for 10 MW of geothermal power served from The Geysers in Sonoma and Lake Counties, California.
California authority signs first PPA for geothermal energy

Calpine’s proposal ranked highest among all Open Season proposals received by MEA based upon five primary criteria: location, portfolio fit, project viability, counterparty strength, and contract terms. MEA received 135 project proposals for California renewable energy in response to its annual Open Season Procurement process.

Calpine currently has 578 employees in Northern California, including 300 at The Geysers. Calpine’s Geysers supply California with approximately 18 percent of the state’s annual renewable energy.

“We’re excited to announce this contract – our first for geothermal power – with a locally-based project in neighboring counties that will supply our customers with cleaner energy sources,” said Dawn Weisz, MEA executive officer. “We’re pleased to be partnering with an environmentally conscious organization that fosters so many local jobs and significantly supports the local economy through its numerous associated benefits.”

The PPA includes a competitive, fixed price throughout the term, and includes a short-term 3 MW contract for 2014 as well as a long-term 10 MW contract for 10 years starting in January of 2017.

The two contracts will deliver more than 900,000 megawatt-hours and enough to power 13,600 local homes.

The energy delivery profile associated with The Geysers is highly desirable due to its predictability and availability. The facility’s proven geothermal-based generating technology produces minimal air emissions.

The Geysers spans portions of two Air Districts and both Lake County and Northern Sonoma County Air Districts meet all federal and state ambient air quality standards.

Calpine’s facility incorporates a recycled water recharge program that resolves the communities’ effluent water disposal problems by using reclaimed water from nearby cities for its injection wells, extending the life of the steam fields for years to come.

With the signing of this agreement, MEA now has 11 contracts for renewable electricity generation. These projects include 52 MW of solar, 8 MW of landfill gas, and now 10 megawatts of geothermal – providing more than 50 percent renewable energy content to its customers.

For additional information:

Marin Energy Authority

The Geysers

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