CPUC Approves Major Clean Energy Projects by Southern California Edison

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

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

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

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

The solar facilities are situated 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 southwest Utah, will be developed in two phases: the first phase, 70 MW, is expected to come online in 2026, with the second phase scheduled for 2028.

Publicly available documents from western electric utilities suggest that Fervo’s PPAs may range between $0.08 and $0.10 per kWh. Fervo Energy recently announced a significant improvement in drilling efficiency, with drilling times in February being 70% faster and 50% cheaper than in 2022.