Sempra unit adds geothermal power

San Diego Gas & Electric announced a deal to add more geothermal energy to its portfolio, signing a power purchase agreement for 40 megawatts with California's EsmeraldaTruckhaven Geothermal.

This agreement would boost San Diego Gas & Electric's total geothermal energy supply to 60 MW produced from Esmeralda's facilities in Imperial County, Calif.

San Diego Gas & Electric is a unit of Sempra Energy (NYSE: SRE).

"As we continue to aggressively seek out renewable sources of energy to meet the state's 20 percent by 2010 mandate, we will look to renewable developers such as Esmeralda to help us expand our renewable energy footprint throughout the county," said Debra Reed, president and CEO of San Diego Gas & Electric.

The company said the additional geothermal would be enough to power 26,000 homes.

San Diego Gas & Electric said five percent of its energy comes from renewable resources such as wind, solar, biomass and geothermal.

Last week, San Diego Gas & Electric received approval from the California Public Utilities Commission for a 1.5 MW biomass plant being developed in Vista, Calif.

In the company's most recent solicitation, it said developers bid more than 5,000 MW of renewable energy for a majority of projects that would be built in the Imperial Valley.

San Diego Gas & Electric said its 2008 renewables solicitation would be issued later this month.