Ormat receives tax incentive for 19 MW plant extension in Nevada
Don A. Campbell (formerly Wild Rose) plant of Ormat, Nevada, U.S. (source: Ormat Technologies)
Alexander Richter
30 Mar 2015
The Don A. Campbell Phase II geothermal power plant extension is one of five renewable energy projects currently under construction in Nevada. These five will eventually join 16 renewable projects that have benefited from GOE tax incentives.
In a recent official release from Nevada’s Governor’s Office of Energy, a new tax incentive for Don A. Campbell Phase II geothermal power plant has been made public. According to the press release:
More of Nevada’s extensive geothermal energy is being tapped after the Governor’s Office of Energy (GOE) granted a tax incentive for construction of a geothermal power plant in Mineral County.
Ormat Technologies, Inc. received the incentive for its Don A. Campbell Phase II geothermal power plant after meeting State and local statutes requiring that the project provide employment for Nevadans, a living wage with comprehensive health benefits, and a major capital investment in the State.
The power plant is one of five renewable energy projects currently under construction in Nevada. These five will eventually join 16 renewable projects that have benefited from GOE tax incentives and are currently operating in the Silver State. The 1,573 MW (nameplate capacity) of these power plants are helping to position Nevada as a major renewable energy producer and exporter in the West.
“The construction of this power plant is a result of Nevada’s commitment to the development and exportation of renewable energy,” said Paul Thomsen, GOE Director. “The streamlined permitting and enhanced incentives are allowing projects like this to move forward, create jobs, and show energy developers that Nevada is a great place to do business.”
Once completed, the power plant will be capable of generating up to 19 MW (net) on a yearly average basis, above the Power Purchase Agreement nominal target of 16.2 MW, which will be sold to Southern California Public Power Authority under a 20 year contract.
According to Ormat’s tax incentive application, the Don A. Campbell Phase II geothermal power plant is expected to create 76 full-time construction jobs with an average hourly wage of $41 and five full-time operational jobs with an average hourly wage of $26.
The tax incentive granted to Ormat is $10 million over 20 years. The total amount Nevada expects to receive from this project is $76 million, which includes employee wages, property and school support taxes, and a capital investment worth $59 million dollars. This represents more than a 7-to-1 return on Nevada’s investment, far exceeding the loss of revenue from the tax incentive.
“This tax incentive is another great example of how government and industry are working to bring sustainable jobs and business to Nevada,” said Bob Sullivan, Executive Vice President of Sales, Marketing and Business Development at Ormat. “Incentives such as these are key in allowing Ormat to be successful in the highly competitive California renewable energy market while bringing quality jobs and economic development to rural areas of our home state. Nevada is blessed with considerable geothermal resources, and we look forward to continuing developing these clean, reliable and flexible resources for the benefit of Nevadans and the region in general.”
The GOE decision to approve Ormat’s tax incentive request highlights the GOE staff’s ability to facilitate cooperation among stakeholders, lead initiatives to stimulate economic development, and attract energy related business ventures that include site development, generation and production, and inter/intrastate transmission.
