Buffett's NV Energy looks to add 2GW of solar and storage while jettisoning coal in Nevada

NV Energy is proposing to add 1.03GW of both battery storage and solar capacity to its system in the state of Nevada by the end of 2027, including from one of the largest photovoltaic (PV) facilities in the country.

The electric utility, owned by billionaire Warren Buffett’s Berkshire Hathaway conglomerate, detailed its clean energy expansion ambitions in its triennial integrated resource plan (IRP) submitted to the Public Utilities Commission (PUC) of Nevada for consideration, and potential approval.

The plan proposes three 25-year PPAs involving solar energy offtake and 20-year terms for the battery components. All three Nevada projects are under development by independent power producers.

Libra Solar would have 700MW capacity on an alternating current basis and a 700MW battery with four-hour duration. Service date is by the end of 2027. This facility would be the country’s third largest PV plant after the 1GW Copper Valley, also in Nevada, and the 875MW Edwards & Sanborn in California.

Dry Lake East would have 200MW capacity with a 200MW battery and enter commercial operation by the end of 2026. Boulder Solar III would have 128MW capacity and a 128MW battery and become fully operable by June 2027. Both batteries would have duration of four hours.

NV Energy also requested to add 400MW of natural-gas peaking units, which will be used during times of peak loads to reduce reliance on unreliable market purchases.

The utility said the natural-gas units are a low-cost option for customers which will be able to utilise hydrogen in the future while not impacting NV Energy’s efforts to meet the state renewable standards.

“This is our path forward and these are our priority projects to meet the present and long-term needs of our current and future customers,” said NV Energy CEO Doug Cannon.

He said the plan will position Nevada to continue to provide reliable energy services “at a cost that is below the national average and is more than 50% cheaper than energy rates paid by residents of California.”

The IRP seeks continued approvals for NV Energy’s Greenlink transmission project, which includes construction of 472 miles (760 km) of high-voltage lines that the federal government estimates could deliver enough clean power for up to 1.2 million homes. The lines would link Las Vegas with Reno after late 2026 completion.

Project costs have soared to $4.2bn due to inflation, labour costs, and supply chain constraints, according to the utility, which noted that all other transmission alternatives have also experienced significate cost escalation.

The only practical alternative is to build generation closer to load centres with the required transmission upgrades. But this alternative would not provide any additional system import and export capacity or transfer power between northern and southern Nevada, according to the utility.

NV Energy also said in the IRP that it remains committed to elimination of coal-fired generation from its existing resource portfolio by the end of 2025.