Projected to generate approximately 71,500MWH of power per annum, the project is under a 25-year power purchase agreement with NV Energy. As per the terms of the agreement, electricity produced at this plant will be sold at $89.75/MWH with a one percent annual escalator added.
US Geothermal Chief Executive Officer Daniel Kunz said the beginning of commercial operations was a major milestone for the company, the project as well as the country’s geothermal industry.
"We truly appreciate the formidable efforts of our employees and contractors and the confidence and patience of our lenders, customer, and shareholders over the last several months," added Kunz.
USG Nevada will now look to secure Section 1603 ITC cash grant of approximately $11 million for the project by filing requisite paperwork. $7.5m of these funds will be used to repay the existing bridge loan, paving the way for securing the project’s long term financing.
