Nevada Power seeks nod for 200 MW solar PPAs at very low prices

Nevada Power, a unit of US utility NV Energy Inc (NYSE:NVE), is seeking approval for two 100-MW power purchase agreements (PPAs) for solar power at “very reasonable” prices.

If the Nevada Public Utilities Commission (PUC) approves the deals, the utility will be paying USD 46.00 (EUR 41.8m) per MWh for the output of SunPower’s (NASDAQ:SPWR) Boulder Solar park and just USD 38.70/MWh for power from First Solar Inc’s (NASDAQ:FSLR) Playa Solar 2 farm. These rates compare to an average cost per MWh of solar electricity of about USD 137.65 for Nevada Power in 2014, the company pointed out.

“Overall, the two projects are very reasonable priced when compared to existing solar contracts and to other, fossil-fuel driven generation,” it says in the filing.

The Boulder Solar farm is expected to produce 289.3 GWh in its first year of operation, while the Playa Solar 2 will generate about 307.8 GWh in its first year.

Solar prices in the US are falling very fast and other states are also witnessing record-low bids. Texas-based community-owned utility Austin Energy, for example, recently said it has received solar power bids of under USD 40 per MWh in its 600-MW request for proposals (RFP).

(USD 1 = EUR 0.908)

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