Idaho Power seeks first ever solar power sales agreement

July 13, 2010

The Idaho Power Company is seeking its first ever sales agreement for a solar project, applying for approval from the Idaho Public Utilities Commission.

Comments about the 20-year deal will be accepted by the state regulators until August 19.

Idaho Power wants to buy up to half the output from the 20-megawatt (AC)` solar photovoltaic project Grand View Solar PV One, which is being developed by Grand View Solar PV One LLC, owned by Robert Paul of Desert Hot Springs, California.

The project is located on a 180-acre site in Elmore County, 16 miles west of Mountain Home, in the south of the state.

Hopes are for the facility to be up and running by January 2011.

Prices

Idaho Power Company, which has its head office in Boise, ID, is proposing to pay $77.77 per megawatt-hour for the solar power in 2011, rising each year to a level of $128.31 per MWh in 2031.

The power purchase agreement should see monthly output for the plant varying from 1,326MWh in January to 4,816MW in July.

Under the arrangements, which were agreed by the utility and developer early last month, the power company has agreed to pay for the first 10MW output of the solar plant, but not be required to pay special rates for any energy above this sourced from the plant.

This is because Idaho currently caps the size of projects that can qualify for special rates for alternative energy.

The Commission said last week that the developer of the solar project will be required to allow Idaho Power to complete a study on how the facility will connect to the grid.