US Utility Signs PPA For 120 MW Solar At $0.022/kWh

• Idaho Power has signed a PPA with Jackson Holdings to procure power from a 120 MW solar power plant
• Initial tariff payable is $21.75 per MWh or less than $0.022 per kWh, which it says is among the lowest-cost solar contracts of its size publicly reported
• It will also help the utility replace the energy produced by the North Valmy coal-fired plant which Idaho Power plans to shut soon
• Later, Idaho Power will have the option to buy the facility as well as procure power from a proposed expansion at a slightly higher price

Idaho, United States based electricity utility Idaho Power will procure power from a 120 MW solar power plant for an initial tariff of less than $0.022 per kWh or $21.75 per MWh once the project completes by 2022. A local company, Jackpot Holdings, LLC, will develop the plant south of Twin Falls and sell electricity to the utility.

Idaho Power said this is among the lowest-cost solar contracts of its size that has been publicly reported. Along with purchasing power from this project, Idaho Power has the option to purchase the facility as well as obtain energy from a proposed expansion at a slightly higher price.

Greentech Media (GTM) of Wood Mackenzie confirms the tariff as rivalling some of the lowest prices seen in the US market to date. Colin Smith, Senior Solar Analyst at Wood Mackenzie Power & Renewables, said this is the lowest PPA price in Idaho, significantly below qualifying facility rates set out under the Public Utility Regulatory Policies Act. This project alone will increase the state's cumulative solar capacity by 35%, reported GTM citing WoodMac data.

The 120 MW Jackpot Holdings plant will replace the energy produced by the North Valmy coal-fired plant in Nevada which it has proposed to close down.

The agreement is not yet final, Idaho Power has submitted it to the Idaho Public Utilities Commission for approval.

In March 2019, Idaho Power announced its goal of providing 100% clean energy by 2045, moving away from coal and investing in clean generation sources such as wind and solar, along with storage. The power company said it is already buying a significant amount of energy generated by wind and solar and sells renewable energy credits.