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California utility locks in 86 MW of geothermal power from Salton Sea plants

California utility locks in 86 MW of geothermal power from Salton Sea plants

Built World

Imperial Irrigation District signs 10-year deal with BHE Renewables for around-the-clock renewable power

2 days ago: ThinkGeoEnergy reports the IID-BHE Renewables deal

Overview

Updated 1 hour ago

The Imperial Irrigation District, a community-owned utility in Southern California, signed a 10-year deal for 86 megawatts of geothermal power from two plants near the Salton Sea. The power comes from BHE Renewables' Salton Sea 4 and Leathers projects in Calipatria, with deliveries starting January 1, 2027.

Geothermal runs around the clock, unlike solar or wind. That makes it valuable for meeting summer peak demand in the Imperial and Coachella Valleys, and it helps IID meet California's renewable portfolio standards. The deal also keeps the plants and their local workforce running.

Why it matters

This deal locks in 86 MW of around-the-clock renewable power for a California utility, helping it meet summer peaks without spot-market purchases.

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Key Indicators

86 MW
Geothermal capacity added
44 MW from Salton Sea 4 and 42 MW from Leathers.
10 years
Agreement term
Deliveries run from January 1, 2027 through 2036.
345 MW
BHE Renewables' Imperial Valley capacity
Ten geothermal plants across the region.
100,000
Homes the power can serve
IID's estimate of what 86 MW can power.

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People Involved

Organizations Involved

Timeline

2017 October 2026

5 events Latest: 2 days ago
Tap a bar to jump to that date
  1. ThinkGeoEnergy reports the IID-BHE Renewables deal

    Latest Report

    Geothermal industry outlet covers the 86-MW PPA and its role in IID's resource plan.

  2. IID announces 86-MW geothermal agreements with BHE Renewables

    Agreement

    IID signed 10-year deals for 44 MW from Salton Sea 4 and 42 MW from Leathers, plus Yuma Cogeneration capacity.

  3. IID approves Hell's Kitchen PPA amendments

    Decision

    Construction delays pushed operation to 2026 and raised the price to $93 per megawatt-hour, with a $5 million penalty payment.

  4. IID signs Hell's Kitchen geothermal PPA

    Agreement

    IID contracted with Controlled Thermal Resources for geothermal power at $69 per megawatt-hour.

  5. IID signs first CalEnergy geothermal PPA

    Agreement

    IID added geothermal power to its portfolio as it ended coal involvement.

Scenarios

1

Geothermal deliveries begin on schedule

Likely Resolves by Q1 2027

Discussed by: IID and BHE Renewables

The Salton Sea 4 and Leathers plants deliver power starting January 1, 2027, as contracted. IID adds 86 MW of firm renewable capacity to its portfolio, strengthening summer reliability across the Imperial and Coachella Valleys.

2

Project delays push back delivery

Possible Resolves by Q2 2027

Discussed by: Calexico Chronicle, based on the Hell's Kitchen precedent

Construction or permitting delays shift the start date, as happened with IID's Hell's Kitchen project, which slipped from 2024 to 2026 and saw its price rise from $69 to $93 per megawatt-hour. A similar delay would force IID to rely more on spot-market purchases during peak periods.

3

Lithium extraction becomes a major revenue stream

Uncertain Resolves by End of 2028

Discussed by: ThinkGeoEnergy, BHE Renewables

BHE Renewables' partnership with TerraLithium scales up lithium production from geothermal brine at its Salton Sea plants. This would add a revenue stream beyond electricity and could reshape the economics of the region's geothermal fleet, potentially lowering power costs for IID customers.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

January 2020 - November 2024

Hell's Kitchen geothermal delays (2020-2024)

IID signed a geothermal PPA with Controlled Thermal Resources in January 2020 at $69 per megawatt-hour. Construction delays pushed the commercial operation date from March 2024 to as late as December 2026, and the price rose to $93 per megawatt-hour.

Then

IID secured a $5 million penalty payment from the developer and revised contract terms.

Now

The episode showed that geothermal projects in the region face real schedule and cost risk.

Why this matters now

It is the cautionary tale against which the BHE Renewables deal will be measured.

2017

IID's coal exit and geothermal turn (2017)

IID ended its involvement with coal power generation in 2017 and signed a geothermal PPA with CalEnergy, the same operator behind the new deal.

Then

IID added local renewable baseload power to its portfolio.

Now

It set the pattern of geothermal procurement that continues with the 2026 BHE Renewables deal.

Why this matters now

The new agreement extends a strategy IID has pursued for nearly a decade.

Sources

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