The first geothermal power plant in New Mexico is about to go ahead after the groundbreaking ceremony was held to mark the beginning of construction. The Lightning Dock Geothermal Power Plant in Hidalgo County, which is being developed by Raser Technologies, will produce up to 10MW of electricity when it comes into full commercial production.

A 20 year power purchase agreement (PPA) has already been made with Salt River Project (SRP) a public utility serving the greater Phoenix, Arizona area. It’s expected that power will start to be delivered in the first quarter of 2009. The power generated is anticipated to be enough to power around 5,500 homes.

According to Brent M. Cook, Raser’s Chief Executive Officer, the power plant will be designed to provide baseload renewable energy.

The Lightning Dock project is one of the oldest Known Geothermal Resource Areas in New Mexico, having been studied for more than 20 years. Temperatures ranging from 250 to 300 degrees (F) have been detected from test wells drilled in the area, sufficient heat to produce sustained geothermal power.

It is possible that the initial 10MW that will comprise the Lightning Dock Power Plant may be expanded, with Salt River Project having the chance of first rights at purchasing any additional electricity.