Nevada-based NV Energy will convert its only coal-fired power plant to a natural gas plant, the company said in a news release Wednesday.
NV Energy plans to file a fifth amendment to its 2021 Integrated Resource Plan (IRP) with the Public Utilities Commission of Nevada (PUCN) in late July. The amendment advances the company’s commitment to retire its final coal-fired generating plant by the end of 2025, as well as propose new renewable resources in the state for power generation, NV Energy said in the press release.
NV Energy’s North Valmy coal-fired power plant, located in northern Nevada near Battle Mountain, will be converted to use natural gas. The conversion will allow the company to “reduce carbon emissions by nearly 50 percent by eliminating coal while ensuring the company has a facility in that part of the state that can operate 24 hours a day to meet our customers’ energy needs,” according to the statement.
“The amendment reflects the best path forward to balance the stability and reliability of our energy grid while working toward the goal of reducing carbon emissions,” said Doug Cannon, president and CEO of NV Energy. “By removing coal from the NV Energy system, we continue to deliver on the commitment to reduce Nevada’s carbon emissions.”
“NV Energy carefully analyzed several options for the North Valmy location to find a balanced solution that considered reliability, affordability and sustainability. Serving rural Nevada customers is a critical priority, and the proposed option provides a reliable and cost-effective option to serve a more remote location that also reduces carbon emissions to adequately meet the region’s energy demands,” Cannon said.
The power plant conversion plan is the latest in a series of similar decisions made by US energy companies amid a trend of switching power from coal to gas. In June, the owner of the plant at the Homer City, Pennsylvania plant announced its closure. Coal-fired plants have struggled to compete effectively in U.S. electricity markets against newer, more efficient, natural gas-fired combined-cycle power plants, the U.S. Energy Information Administration said.
Renewable Energy Plans
The IRP amendment also includes the purchase, installation and operation of a company-owned 400-megawatt (MW) solar plant along with a 400-MW, four-hour battery storage system in northern Nevada. The solar facility and associated storage “will provide critical renewable generation to offset the loss of other renewable energy projects that are now not being developed,” NV Energy said, referring to several projects previously approved by the PUCN but which had been withdrawn from development.
In addition, NV Energy said it is seeking approval for additional transmission infrastructure to support continued growth in the state, including in the Apex area in the city of North Las Vegas.
NV Energy said it is “on track” to meet Nevada’s renewable portfolio requirement of 50 percent by 2030 and 100 percent by 2050.
In April, NV Energy announced that it had exceeded the state’s 2022 renewable energy requirement by nearly eight percent, reaching a figure of 29 percent. The company said it was the 13th year in a row that it exceeded the state’s requirement. NV Energy’s current portfolio consists of 53 geothermal, solar, large-scale solar and storage, hydro, wind, biomass and privately supported solar projects in service and under development.
NV Energy Inc. is a holding company that is the parent of Nevada Power Company and Sierra Pacific Power Company. The company says it provides energy services to more than 1.5 million customers throughout Nevada and a typical annual tourist population of 54 million.
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