Northern Nevada leading the way in alternative energy development – May 2008
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Nevada already is gaining a strong reputation as a leader in the alternative energy arena, and the rise of gas prices nationwide is stimulating even greater discussion about the need for continued development of renewable and alternative energy sources.
In 2003, Nevada legislated a Renewable Portfolio Standard that helped rejuvenate our geothermal power industry. Today, the Silver State is No. 1 in geothermal energy use per capita in the nation. State law mandates that a significant amount of the energy sold comes from renewable sources; Nevada Power and Sierra Pacific Power get a portion of their power from 
27 renewable energy sources, including geothermal, solar, hydro and biofuel resources. Nevada Power will spend approximately $2 billion to purchase and invest in new renewable energy by 2015. Here’s how some of those plans are unfolding:
Nevada Geothermal Power Inc. (NGP) and Ormat Technologies, Inc. announced a $76 million contract for a 49.5 megawatt power plant at Blue Mountain. Ormat has supplied more than 950 megawatts of geothermal power, and its green energy plants meet stringent clean-air standards. Nevada Power also has a joint ownership agreement with Ormat for codevelopment of the Carson Lake geothermal energy project near Fallon. This project marks the first time a utility and a geothermal developer have joined forces in this manner.
Sierra Pacific Power Co.’s 514-megawatt Tracy Combined Cycle Plant is expected to start producing electricity by this summer. The plant will have the highest thermal efficiency of any generating plant in Sierra’s system. Sierra’s proposed Ely Energy Center in White Pine County would provide an electric connection between the northern and southern parts of the state. The undertaking marks the largest energy development project in the state since construction of the Hoover Dam. Plans call for two 750-megawatt units utilizing state-of-the-art, environmentally compliant, clean, pulverized-coal technologies. The first unit is expected to become operational in late 2011, with the second following in 2013.
Alternative energy creation efforts are not only originating from local entities, but gaining the interest of national and international companies as well. Enel North America, Inc. is a leader in renewable energy projects. In 2007, Enel acquired the rights to develop four geothermal projects totaling approximately 150 megawatts in Utah, California and Nevada. With a diversified renewable energy portfolio, Enel generates electric power from hydropower, wind, biomass and geothermal.
With so much untapped potential for development of alternative energy resources, Nevada is sure to remain a strong player for the foreseeable future. To assist efforts at the legislative level, Sierra Pacific has joined a national coalition urging support from Congressional leaders to pass an extension of federal tax incentives that promote renewable energy. It will be interesting to see how an election year, paired with high energy costs, will affect our state’s notable efforts.
