Ormat Technologies announced today that its McGinness Hills geothermal power plant located in Lander County, Nevada met the requirements for commercial operation.
“We are thrilled to continue our long-standing relationship with NV Energy as we expand our geothermal portfolio,” said Yoram Bronicki, president and chief operating officer of Ormat. “Today’s announcement, coupled with the opening earlier this year of the 18 MW (net capacity) Tuscarora power plant, reinforces Ormat’s commitment to expanding the renewable energy market across the state of Nevada and throughout the world.
“In addition, McGinness Hills demonstrates our ability to develop a successful greenfield project categorized as a blind system. Blind geothermal systems, defined by a lack of surface hot springs or fumaroles, are the future of geothermal energy growth in the western United States,” Bronicki added.
According to an article in Haaretz, capital market sources say the new plant will boost Ormat’s revenues by $21 million a year. The firm’s cost of electricity generation at the facility is about $80 per megawatt, 1% above the company’s average in the first quarter. Ormat will sell the electricity generated at McGinness Hills to NV Energy, a Las Vegas-based utility, under a 20-year contract.
The Ormat plant has actually been operating since June 15, but until Ormat completed the formalities under its financing obligations, Ormat was selling power to NV Energy at half price. Now that the plant is fully operational, NV Energy will reimburse Ormat for the price difference.
For the full Haaretz article click here