Idaho Power has inked a 20-year power purchase agreement for a 120 MW solar project in Idaho as it looks to replace coal-fired generation.
Alternative Power Development Northwest, a company set up by former Enron Wind executive Robert Paul, is the developer behind the project, known as Jackpot Solar. It was originally designed as a 100 MW project spread across four special purpose vehicles.
Under the PPA, the utility will initially pay $21.75/MWh. The contract opens the door to the potential acquisition of the project by the utility as well as an increase in contracted capacity at a slightly higher price.
Idaho Power says the PPA will help replace the output of the 522 MW North Valmy Generating Station dual-unit coal-fired plant near Valmy, Nev., which it co-owns with NV Energy.
The utility recently reached an agreement with NV Energy to end its participation in the plant in two phases, according to a recent filing with the Idaho Public Utilities Commission. Idaho Power will withdraw from the 254 MW first unit by the end of this year and the 268 MW second unit by the end of 2025.
The Jackpot solar project is expected to be completed by 2022.