Idaho Power, Ridgeline Energy get PPA approval for 80 MW wind farm
(ADPnews) - Nov 30, 2010 - The Idaho Public Utilities Commission has cleared utility Idaho Power Co to sign a 25-year power purchase agreement (PPA) for the electricity output of an 80 MW wind farm of Ridgeline Energy in eastern Idaho.
The plant, comprising 44 turbines supplied by Vestas Wind Systems (CPH:VWS), is scheduled to start operation by the end of December 2011.
Under the PPA with Ridgeline, Idaho Power will pay an average price of USD 71.29 (EUR 54.36) per one MWh, lower than the current avoided cost rate of USD 75.88 per MWh in Idaho.
The agreed price will be USD 57.15 per MWh in 2011, and rise by 2.5% a year for 20 years to USD 91.36 per MWh in 2030 and by 2% for the last five years of the contract to USD 101.37 per MWh in 2035.
The PPA is in accordance with the state's Public Utility Regulatory Policies Act (PURPA) programme that enables local utilities to buy power from small clean energy projects at a price set by the Idaho Public Utilities Commission. Under the programme, utilities can purchase power from plants with capacity up to 10 MW and from larger plants if the agreed purchase price is equal or below the Commission's rate.