The California Public Utilities Commission (CPUC) has approved five power purchase agreements (PPAs) for clean energy projects proposed by Southern California Edison. These agreements cover three solar projects with a combined capacity of 525 MWac and two geothermal projects. Fervo Energy noted that these are the largest geothermal PPAs in the nation.
Strategic Push for Renewable Energy Capacity and Emission Reductions
According to the U.S. Energy Information Administration’s Form EIA-860M, one of the solar facilities in the Atlas Solar project portfolio will also incorporate energy storage.
​The three solar projects are projected to have an AC capacity factor of just over 36%, while Fervo Energy’s geothermal facilities are expected to achieve a significantly higher capacity factor of more than 82%.
California’s Strategy: Integrating Solar, Energy Storage, and Geothermal to Achieve Reliability and Emission Targets.
The CPUC’s approval aligns with California’s strategy to meet its mid-term reliability capacity requirement of 3.8 GW by 2036. Both the geothermal and solar-plus-storage projects are key to these objectives as the state also aims to reduce emissions to 25 million metric tons of carbon dioxide equivalent (MMT CO2e) by 2035.
To that end, California has set ambitious targets for geothermal capacity: 800 MW by 2026, 1.1 GW by 2027, and 2 GW by 2033.
174 Power Global Expands Solar Portfolio with Atlas Solar Projects
The Atlas Solar V, VI, and X power plants are owned by 174 Power Global LLC, a subsidiary of the South Korean company Hanwha. Hanwha also owns Qcells, the largest silicon solar module manufacturer in the United States.
These solar facilities will deliver electricity through the Atlas Solar Tie Line Project, a 500kV transmission line in Salome, Arizona. This line will link the Atlas facilities to the Ten West Link 500 kV transmission line, which will transmit the electricity to Blythe.
Solar and Geothermal Developments in Southwest USA
The solar facilities are located in a development area overseen by the U.S. Bureau of Land Management and the Arizona State Land Department. Meanwhile, the geothermal facilities in southwest Utah will be developed in two stages: an initial 70 MW phase is expected to begin operations in 2026, with the second phase following in 2028.
Documents from Western electric utilities suggest that Fervo’s power purchase agreements (PPAs) may cost between $0.08 and $0.10 per kWh. The company has also significantly improved drilling efficiency, with its February operations proving 70% quicker and 50% cheaper than in 2022.
These advancements in geothermal technology are driving greater efficiency and cost-effectiveness, supporting the expansion of renewable energy capacity in the Southwest.