Salt River Project signs on to geothermal plant in California
Salt River Project has agreed to purchase 49 megawatts of power from a geothermal power plant under construction in California.
The project, being built in Imperial Valley, will supply power to SRP under a 30-year agreement, bolstering the utility’s portfolio of renewable energy.
“Geothermal energy is an extremely valuable product and it greatly enhances our sustainable portfolio,” Mark Bonsall, SRP chief financial executive, said in a prepared statement. “It is one of the only renewable-energy technologies that can provide energy for our customers around the clock.”
SRP had experimented with geothermal power between 2004 and 2008, when it purchased about 25 megawatts of power from another plant in that area, said Scott Harelson, spokesman for the utility.
Geothermal plants work by harnessing naturally occurring steam to power generators. The water left over often is reinjected into the ground to help create a perpetual power source.
The Hudson Ranch I project, being developed by EnergySource LLC, will be finished in 2012 and will cost about $350 million. Financing for the project was provided by an eight-member syndicate of banks.
Read the full post in the Phoenix Business Journal.
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