Idaho Power has reached an agreement to buy clean, local solar energy at a price that’s among the lowest on record. The energy will come from a future solar project south of Twin Falls that’s expected to generate 120 megawatts (MW).
Idaho Power signed a 20-year power purchase agreement with Jackpot Holdings, LLC, an Idaho company that plans to complete the solar array by 2022. Idaho Power will initially pay $21.75 per megawatt-hour (MWh) — less than 2.2 cents per kilowatt-hour (kWh). The agreement includes the potential for Idaho Power to buy the facility, as well as obtain energy from a proposed expansion at a slightly higher price.
According to the company, this is among the lowest-cost solar contracts of its size that’s been publicly reported. That low cost makes adding solar power from this facility to Idaho Power’s energy mix cost-effective for customers.
The Jackpot Holdings agreement will help replace energy produced by the North Valmy coal-fired plant in Nevada, where Idaho Power recently agreed to end operations. The utility’s other energy resources will help even out fluctuations that could result from new solar energy coming onto the system.
The unique location of this solar array also made this deal attractive to Idaho Power. Once it is built, the array will connect to an existing transmission line that today delivers energy from the North Valmy plant.
The company’s agreement with Jackpot Holdings supports Idaho Power’s goal of providing 100% clean energy by 2045, which the company announced today in a separate news release. Idaho Power will submit the agreement to the Idaho Public Utilities Commission for approval.
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