Fri, Mar 28, 2008 (2:08 a.m.)

It was welcome news Wednesday when Nevada Power Co. announced it was partnering with a Reno company to build a geothermal plant near Fallon.

The plant will generate up to 30 megawatts of clean energy at any given time, enough to continuously power about 22,000 homes.

State law requires that Nevada utilities obtain 20 percent of their energy from renewable sources by 2015, and it is encouraging to see Nevada Power moving toward that goal.

Currently, Nevada utilities overwhelmingly burn coal and natural gas in generating about half of the state’s demand for electricity. They buy the rest from out-of-state energy producers. During Nevada’s peak hours of demand, from June to September, as many as 6,700 megawatts are required.

So 30 megawatts, by comparison, is tiny. Nevertheless, Nevada Power’s joint ownership agreement with Reno-based Ormat Technologies is important.

It is rare if not unprecedented for utilities to directly invest in a geothermal project. The practice has been for utilities to ultimately buy power from geothermal companies, but tell them they are on their own in getting their plants built.

Ormat Technologies has been around for decades and has developed an international reputation for expertise in geothermal energy, which produces steam from hot rocks and hot water below the Earth’s surface. The steam powers turbines that create electricity.

As a partner in the plant, Nevada Power will have more incentive to see it grow and there is lots of room for that.

The United States is the world’s leading producer of geothermal energy, and Nevada is the country’s leading producer. Even still, the potential has been barely tapped.

Nevada Power is preparing to invest at least $5 billion in a polluting coal-burning plant proposed for outside Ely in eastern Nevada. It says it must do this to ensure its future supply of affordable and reliable energy.

But coal is yesterday’s energy. We believe utilities’ plans for the future should be devoted to tomorrow’s energy renewables, including solar and geothermal, both of which have unlimited potential in Nevada.