Nevada utility NV Energy has received approval from state regulators to purchase two solar-plus-storage projects that will replace power generation from the group’s coal-fired North Valmy Generating Station.
The 522-MW North Valmy plant is scheduled for closure in 2025. NV Energy in June of last year filed its triennial integrated resource plan with the Public Utilities Commission of Nevada (PUCN) and outlined its strategy to add about 600 MW of solar power generation capacity, and 480 MW of energy storage, to replace North Valmy’s electricity output. North Valmy, co-owned by NV Energy and Idaho Power, has been utilized only seasonally in recent years to provide summer peaking capacity.
The solar-plus-storage projects, which NV Energy is buying from Primergy Solar, are both in Nevada’s Humboldt County, in the northern part of the state about 170 miles northeast of Reno, near the Oregon border and in the vicinity of the North Valmy station. Primergy Solar, a portfolio company of Quinbrook Infrastructure Partners, on Jan. 24 announced the state PUC had approved the sale.
Quinbrook, with U.S. headquarters in Houston, Texas, is a global investment management company focused on renewable energy. The hybrid power installations in Nevada include the Hot Pot Solar Project, a 350-MW solar-photovoltaic (PV) system paired with 280 MW of battery storage, and the Iron Point Solar Project, a 250-MW solar PV system paired with 200 MW of battery storage capacity. The projects are expected to come online by year-end 2024.
Build Transfer Agreement
Primergy and NV Energy entered into Build Transfer Agreements for the sale and purchase of the projects. NV Energy filed its plan with state regulators on July 1, 2021.
“We are pleased that the PUCN has approved these milestone renewable energy projects that will help advance Nevada’s net-zero carbon goals,” said Ty Daul, Primergy’s CEO. “These projects demonstrate the important role that solar-plus-storage can play in replacing coal generating plants with clean and low-cost renewable energy. Our portfolio in Nevada represents a substantial multi-billion dollar investment in new energy infrastructure for the state. We are proud to be bringing reliable, safe and cost-effective carbon free power to homes and businesses across Nevada.”
Primergy’s Nevada portfolio includes more than 1,300 MWac of solar power capacity, and 3,330 MWh of battery energy storage systems. The company’s presence in Nevada is anchored by the $1.2 billion Gemini Solar Project, where preliminary construction is under way. The Gemini project is scheduled be operational late next year.
“This is yet another bright day in Primergy’s stellar growth and achievements and further cements the market leadership position the team has so quickly established in the U.S.” said David Scaysbrook, managing partner of Quinbrook. “We are particularly delighted with the further vote of confidence shown by NV Energy in selecting Primergy and Quinbrook to help deliver their ambitious renewables goals with Iron Point and Hot Pot. Together with Gemini, Quinbrook is making a substantial investment in Nevada which we are confident will serve our investors well for many decades to come.”
—Darrell Proctor is a senior associate editor for POWER (@POWERmagazine).