NV Energy to buy power from Searchlight solar plant

Published Thursday, June 11, 2009 | 6:26 p.m.

Updated Friday, June 12, 2009 | 8:36 a.m.

Searchlight

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The small town of Searchlight in Southern Nevada moved another step toward becoming a big energy center Thursday with the announcement of a deal by NV Energy to buy power from a big solar plant planned for the community.

Searchlight, on U.S. 95 between Boulder City and the California town of Needles, is already proposed to be the site of a big wind energy farm to be operated by Duke Energy. With 161 turbines producing 370 megawatts of power on public land totaling 26,000 acres, that project could serve 100,000 homes.

NV Energy and American Capital Energy announced Thursday they have entered into a long-term power purchase agreement for the sale of energy produced from ACE's 20-megawatt solar photovoltaic power plant to be constructed in the desert near Searchlight, 55 miles south of Las Vegas.

The project, expected to be completed by mid-2010, will be larger than the 14-MW photovoltaic plant completed in 2007 at Nellis Air Force Base. The Nellis plant, toured by President Obama on a recent visit to Las Vegas, is the largest photovoltaic facility currently operating in the United States, NV Energy said.

At 20 megawatts, the Searchlight plant will serve about 4,000 homes, said Tom Anderson, ACE's director of Southwest Business Development. In comparison, Acciona's Boulder City solar plant generates 64 megawatts. It uses a different technology in which concentrated sunlight heats a liquid.

"This is another major step in our commitment to bringing power from renewable resources to the citizens of Nevada," Michael Yackira, NV Energy president and chief executive, said in a statement on Thursday's deal. "Our state is blessed with abundant solar, geothermal and wind resources, and expanding the use of these resources through power purchases of this kind or direct investment in renewable projects is one of our top priorities."

Terms of the power purchase agreement, which is subject to approval by the Public Utilities Commission of Nevada, were not disclosed.

The agreement will assist NV Energy in meeting Nevada’s renewable energy standard, which was recently increased by the Legislature. The standard now requires that 25 percent of energy be generated by renewable resources and energy efficiency and conservation programs by 2025.

The companies said all of the electricity output from the plant will go to customers of NV Energy’s southern service territory.

Construction of the project is expected to create more than 120 jobs and will further develop Nevada’s burgeoning renewable energy workforce, the companies said.

"American Capital Energy is excited about the Searchlight Solar I solar PV project. We are honored to have been selected to work with NV Energy to deliver clean, renewable solar energy to Southern Nevada," Tom Hunton, CEO of Massachusetts-based ACE, said in a statement.

In a presentation earlier this year to the Searchlight Town Advisory Board, ACE officials said the plant is planned for 215 acres of private land 1 mile northwest of U.S. 95 and state Highway 164 headed toward Nipton, Calif.

Anderson said the cost of the project isn't being disclosed and that the deal with NV Energy will help the company obtain financing for the project.

The company plans to work on construction permitting this year and start building the plant in early 2010, assuming the power-purchase deal is approved by the Public Utilities Commission.

ACE, he said, has built about 20 energy projects while its executives combined have built hundreds of such projects.

He said ACE has been working with the Searchlight community and feels it has support there for the project.

"NV Energy is becoming one of the more progressive renewable energy utilities," he added.

Discussion: 6 comments so far…

By Father

6/11/09 at 7:22 p.m.

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One question for the PUC--will the ratepayers rate go down as a result of this agreement?
By neiman1

6/11/09 at 7:29 p.m.

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The cost doesn't matter, we are saving the planet.
By dave202

6/11/09 at 9:52 p.m.

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What about Boulder City? There are two solar plants there already operating? Is this Harry Reid's payback?
By Sunlizard

6/12/09 at 8:49 a.m.

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No, your rates will go way up with industrial scale renewables. The output is small and powerline upgrades will be needed. The grid will have to be redesigned to allow for the unpredictable fluxuations of power determined by the weather. If the power is sold to Nevada residents, they will see a spike in their bills. The energy is usually sold to California. In that case, California rate payers will see the spike in their bill. Twenty megewatts on 200 acres is hardly a drop in the bucket. Plus 20 megawatts is the best case scenario on optimal weather conditions. Photovoltaics do much better on a personal roof top where the energy can be stored in batteries and power a residence all night. There is no way to do this with an industrial system. This is a feel good project that will produce little energy. It is probably a tax break for Nevada Energy. The rich boys will get richer and the small guy will pay for it. Welcome to the green economy. A few fat CEO's will see a lot of green. People are falling for Reid's lies. All backed up by carbon producing natural gas.
By geriatric1943

6/12/09 at 11:59 a.m.

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Sunlizard is right, the rates will go up. As neiman1 stated, 'the cost doesn't matter, we are saving the planet.' Its that type of thinking that keeps the prices high. Ultimately, while I am for good stewardship of the planet, I am not stupid enough to fall for the 'man made global warming' theory. Man, in the name of science, is guessing but it is a theory and not a fact, though many act as it is. The best thing for people to do is to do what they can to install their own wind or solar ideas to cut their electric bills.
By Sunlizard

6/14/09 at 6:20 p.m.

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Here's the inconvenient truth about large scale renewable energy. Your power bill will probably more than double. Take a looky at this! : Gov. Arnold Schwarzenegger's plan to get one-third of the state's electricity from renewable sources by 2020 could cost $115 billion in new infrastructure, according to a report released Friday by the California Public Utilities Commission. Last year, a similar report from the commission estimated the cost at $60 billion.

That money would come from Californians' utility bills...http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2...