CPUC approves major clean energy projects for Southern California Edison

The California Public Utilities Commission (CPUC) has given the green light to five clean energy projects under power purchase agreements (PPAs) filed by Southern California Edison. They include three solar plants with a combined generating capacity of 525 MWac and two geothermal projects. According to Fervo Energy, these geothermal projects constitute the largest geothermal PPAs in the world.

One of the solar facilities, part of the Atlas Solar projects, will integrate energy storage, according to U.S. Energy Information Administration Form EIA-860M. The three solar projects are expected to have an AC capacity factor of just over 36%, while the Fervo Energy geothermal facilities offer a higher capacity factor of over 82%.

The CPUC approval is part of California’s efforts to meet its mid-term reliability target of 3.8 GW by 2036. Both the geothermal and solar-plus-storage projects are aligned with those goals. The state has also committed to reducing emissions by 25 million metric tons of carbon dioxide equivalent (MMT CO2e) by 2035, with a target of 800 MW of geothermal capacity by 2026, 1.1 GW by 2027 and 2 GW by 2033.

The Atlas Solar V, VI and X plants are owned by 174 Power Global LLC, a subsidiary of South Korea’s Hanwha, which also owns Qcells, the largest silicon solar module manufacturer in the United States. The solar facilities, located in Salome, Arizona, will transmit electricity via the Atlas Solar Tie Line Project, a 500 kV transmission line. The line will connect the Atlas facilities to the Ten West Link 500 kV transmission line, facilitating the use of electricity in Blythe, California.

The solar facilities are located in a solar development region managed by the U.S. Bureau of Land Management and the Arizona State Land Department. The geothermal facilities, located in southwestern Utah, will be developed in two phases: the first phase, 70 MW, is scheduled to come online in 2026, and the second phase is scheduled for 2028.

Publicly available Western utility documents suggest Fervo PPAs could range from $0.08 to $0.10 per kWh. Fervo Energy recently announced significant improvements in drilling efficiency, with February drilling times being 70% faster and 50% cheaper than in 2022.

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