- Unlike a majority of cheap solar PPA agreements in the U.S, Idaho Power’s move comes in the market’s fledgling state.
- The move comes immediately after the company announced its plan to generate 100% clean energy by year 2045.
Idaho Power Company (Idaho Power), an Idaho-based regulated electricity generation company, has reportedly signed a new ultra-low solar power-purchase agreement (PPA) to buoy the company’s 100% renewable energy plans.
Reports cite, unlike a majority of cheap solar PPA agreements in the U.S, Idaho Power’s move comes in the market’s fledgling state. The PPA covers a 20-year period & rings in approximately $ 21.175 per MW-hour, with an annual price increase of 1.5%.
According to a report by Renew Economy, the signing of the solar PPA comes immediately after the company announced its plan to generate 100% clean energy by year 2045. The company signed the PPA with Jackpot Holdings to generate solar power through a solar project that would be constructed to the south of Twin Falls. The project would allow the company to completely replace the power it currently generates from its coal-fired North Valmy power plant located in Nevada.
According to a request that was filed at the state’s Public Utility Commission (PUC), phasing out of the Nevada coal-plant would be saving customers more than $12.2 million. However, the utility company wants to include forecasted & actual investments in the power plant & customer rates moving forward.
The company claimed that the average rate-payer would be witnessing an increase of approximately ¢10 in their monthly utility bill if the request is approved by the commission.
Meanwhile, a Senior Solar Analyst at Wood Mackenzie Power & Renewables, Colin Smith stated that the electrical power utility’s deal definitely falls in line with the cheap PPA agreements that have occurred earlier in the industry.
While the utility hailed the deal as a massive step forward, the PUC is still waiting for an official filing of the deal. The company plans to submit the related paperwork this week.