SMUD and Calpine LLC have reached a long-term extension and expansion of their existing power purchase agreement for geothermal energy from The Geysers, strengthening SMUD’s long-term strategy to deliver reliable, clean electricity to its customers.
The new agreement progressively increases SMUD's geothermal power purchase from 100 megawatts to 150 megawatts and extends the contract through 2042.
"This expanded supply of around-the-clock, renewable geothermal energy will further support SMUD’s 2030 Zero Carbon Plan and ongoing commitment to reliability, affordability and environmental stewardship," the California public power utility said.
“Expanding this partnership with Calpine supports our Zero Carbon Plan by bringing more dependable renewable energy to Sacramento, all while continuing to keep our rates among the lowest in California,” said SMUD CEO and General Manager Paul Lau. “We’re proud to lead the way toward a clean energy future that benefits both our customers and our region for generations to come.”
Located north of San Francisco, The Geysers is the largest complex of geothermal power plants in the world.
Geothermal power from The Geysers delivers highly reliable, renewable electricity every hour of every day, making it a valuable resource as SMUD continues to transition its power supply to clean energy, SMUD said.
“Calpine is pleased to deepen our partnership with SMUD as they continue leading the way on clean and reliable power for their customers,” said Gevan Reeves, Vice President of West Origination and Development at Calpine. “Geothermal energy from The Geysers plays a unique role in supporting grid reliability while helping California meet its clean energy goals. We’re proud to partner with SMUD to advance its zero-carbon vision continuing our commitment to the local communities in Lake and Sonoma Counties where our teams live and work to produce this renewable energy.”
