SMUD Signs PPA for Geothermal Energy in California

  • 100MW of electricity offtake is expected under the new deal.
  • SMUD signed a 10-year PPA with Calpine Corporation.

Sacramento Municipal Utility District (SMUD) has signed a new contract with Calpine Corporation. The new deal will see SMUD take electricity from a 100MW portion of The Geysers field in California. The SMUD board approved the agreement under a 10-year power purchase agreement. The agreement is expected to kick into effect by January 1, 2023.

SMUD, a community-owned electric service provider, is in tandem with achieving net-zero carbon emissions in its power supply system by 2030.

“Wind, solar, emerging battery storage systems, and geothermal resources are the types of investments we will pursue to achieve a clean energy future that leaves no community behind,” said Paul Lau, CEO, and general manager of SMUD. The Geysers is located in the north of San Francisco in the Mayacamas Mountains and is considered the world’s single largest source of geothermal energy in operation. A wholly-owned unit of Calpine runs 725 MW of power generating capacity there.

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