- A record low price of US 2.175 cents per kWh PPA contract has been signed in Idaho, USA.
- The Idaho Power project is being built to replace the North Valmy coal power plant.
- The project also benefits from 30% Investment Tax Credit (ITC) allowance in the USA for such projects.
Forbes has reported that a power utility provider in Idaho in the USA, Idaho Power, recently contracted 120MW of solar power for a record low price of US 2.175 cents per kWh. The PPA is for a 20 year period.
This follows previous record low PPA tariff announcements from Dubai’s most recent phase of the Mohammed bin Rashid Al Maktoum Solar Park at US 2.4 cents per kWh (700MW of concentrated solar power (CSP) and 250MW of Solar PV), and the 300MW Sakaka project in Saudi Arabia at US 2.342 cents per kWh.
The Idaho Power project is being built to replace the much larger North Valmy coal power plant in Nevada and crucially, will utilize the grid connection vacated by the site as it undergoes a phased decommissioning process, starting this year. That means the substantial upfront costs of connecting the plant to the grid are avoided. The project will also benefit from ever decreasing module and inverter costs with increasing upside performance output on both components.
The project also benefits from 30% Investment Tax Credit (ITC) allowance in the USA for such projects.
Author: GBA News Desk