Ormat's new Nevada geothermal plant comes on line
McGinness Hills facility could boost the firm's annual revenues by $21m.
Thermal energy firm Ormat Technologies began full operation of its new McGinness Hills geothermal power plant in the U.S. state of Nevada on Thursday. The plant has a capacity of 30 megawatts, boosting the capacity of Ormat's facilities to 586 megawatts.
Capital market sources say the new plant will boost Ormat's revenues by $21 million a year. The firm's cost of electricity generation at the facility is about $80 per megawatt, 1% above the company's average in the first quarter. Ormat will sell the electricity generated at McGinness Hills to NV Energy, a Las Vegas-based utility, under a 20-year contract.
The Ormat plant has actually been operating since June 15, but until Ormat completed the formalities under its financing obligations, Ormat was selling power to NV Energy at half price. Now that the plant is fully operational, NV Energy will reimburse Ormat for the price difference.
The McGinness Hills plant features new technology that boosts the output from geothermal energy by 10% via units that convert relatively low and mid-level temperatures to electricity.