Calpine signs 12-year PPA for Geysers geothermal power offtake

Bear Canyon geothermal plant, The Geysers/ California (source: Calpine)

The Geysers Power Company, LLC, a subsidiary of Calpine Corporation, has signed a set long-term Purchase Agreements with the Northern California Power Agency (NCPA) for the offtake of renewable energy from multiple Calpine geothermal plants located in California’s Sonoma and Lake Counties.

The purchase agreement is for the delivery of up to 50 MW of renewable energy capacity from 2025 through 2026. The capacity will then increase up to 100 MW through 2036, a total period of 12 years. Geothermal energy will be supplied to Silicon Valley Power (SVP), the public power utility of the City of Santa Clara, and potentially other NCPA members.

“NCPA was founded on the principle of environmental responsibility, and since its inception, the agency and its members have continued to lead the way in development of clean and renewable resources. This long-term agreement to secure renewable baseload generation only furthers that objective,” said NCPA General Manager Randy S. Howard.

“Calpine is pleased to be working closely with NCPA, the City of Santa Clara, and the Northern California public power community. Together, we share a long-term vision for the sustainable operation of The Geysers. This agreement with NCPA and the City of Santa Clara helps to support ongoing investment and innovation at The Geysers,” said Calpine Vice President West Origination and Development.

“With ongoing economic development, the demand for power supply in the City of Santa Clara only continues to grow. This agreement will help us power our community with an additional cost-effective investment in clean and renewable geothermal energy that aligns with our dedication to environmentally responsible generation resources,” said SVP Chief Utility Officer Manuel Pineda.

In 2022, Calpine signed a similar 100-MW PPA with the Sacramento Municipality Utility District (SMUD) for 10 years. This PPA was scheduled to take effect on January 1, 2023.

Source: Email correspondence