Sierra Geothermal Establishes Special Committee to Explore Strategic Alternatives and Oversee Proxy Solicitation Process

Sierra Geothermal Power Corp. (TSX VENTURE:SRA) ("SGP") today announced that it
has established a special committee of independent directors to consider and
evaluate strategic alternatives for SGP, and make recommendations thereon to the
Board.


The special committee, which consists of non-executive board members of SGP
include, Rita Theil (chair), Jerry Evans, Alfred Sorensen, and Jack Carthy, will
also oversee SGP's process of proxy solicitation and external communications
involving a requistioned meeting of shareholders scheduled to take place on
January 26, 2010 (the "Meeting").


The special committee has engaged Jacob Securities Inc. to provide financial
advisory services and has retained Ogilvy Renault LLP as its legal advisor.


Further details on the Meeting will be contained in a Management Information
Circular that will be mailed to shareholders of SGP in due course. The formal
Meeting notice is available on SEDAR at www.sedar.com. SGP is not yet soliciting
proxies in respect of the Meeting and nothing in this press release should be
regarded as a solicitation or request for a proxy or a recommendation as to how
shareholders of SGP should vote at the Meeting.


About Sierra Geothermal Power Corp.

Sierra Geothermal Power Corp. is a renewable energy company focused on the
exploration and development of clean, sustainable geothermal power. The Company
is based in Vancouver, British Columbia and listed on the TSX Venture Exchange
under the symbol SRA. Its portfolio of geothermal projects located in Nevada and
California exceeds 365 square kilometres (90,000 acres) and has a combined total
estimated capacity of greater than 500 MW. SGP intends to finance development by
utilizing a combination of corporate equity, joint venture partnerships and
project debt, with the support of US government grants and loan guarantees. To
find out more about Sierra Geothermal Power Corp. (TSX VENTURE:SRA) visit our
website at www.sierrageopower.com.


On behalf of the Board of Directors

Gary Thompson, P.Geo, President, Chief Executive Officer and Director

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking statements. Forward-looking
statements are projections of events, revenues, income, future economic
performance or management's plans and objectives for future operations. In some
cases you can identify forward-looking statements by the use of terminology such
as "may", "should", "anticipates", "believes", "expects", "intends",
"forecasts", "plans", "future", "strategy", or words of similar meaning.
Forward-looking statements in this press release include statements such as,
"established a special committee of independent directors to consider and
evaluate strategic alternatives for the Company, and make recommendations
thereon to the Board, special committee will also oversee the Company's process
of proxy solicitation and external communications involving a requistioned
meeting of shareholders scheduled to take place on January 26, 2010, further
details on the Meeting will be contained in a Management Information Circular
that will be mailed to shareholders of SGP in due course and the Company's
intent to finance the development of its projects through a combination of
corporate equity, joint venture partnerships and project debt with the support
of U.S. government grants and loan guarantees. These statements are only
predictions and involve known and unknown risks, uncertainties and other
factors, including the risks inherent in our industry, the challenging capital
markets and other risks identified by us in our periodic filings on SEDAR (which
can be viewed at www.sedar.com). Any of these risks could cause our or our
industry's actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.


While these forward-looking statements and any assumptions upon which they are
based are made in good faith and reflect our current judgment regarding the
direction of its business, actual results will almost always vary, sometimes
materially, from any estimates, predictions, projections, assumptions or other
future performance suggested in this press release. Except as required by
applicable law, including the securities laws of Canada, we do not intend to
update any of the forward-looking statements to conform these statements to
actual results.