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Exhibit 4.86

| | NEVADA GEOTHERMAL POWER INC.
| | ----------------------------
| |                             
| | Suite 900                   
| | 409,Granville
      St.     
| | Vancouver, B.C              
| | Canada VC6 1T2              

July 11,2007

Andrew T. Studley, P.Eng., CPA 170 Glencairn Avenue,
Toronto, Ontario M4R 1N2

Dear Andrew:

RE: OFFER OF EMPLOYMENT - CFO

I am pleased to offer you the position of Chief Financial
Officer of Nevada Geothermal Power Inc. I am confident that this position will
provide you with a unique challenges and opportunities as we build NGP into a
leader in alternative energy development. As a senior member of the management
team you will be in a position to significantly contribute to the future success
of the Company.

The following summarizes the key terms of the offer:

PositionThe Company is offering you a regular,
full-time position as Chief Financial Officer (CFO) effective August 1, 2007,
reporting directly to the President and CEO. You will also have a direct
reporting responsibility to the Audit Committee of the Board of Directors.

CompensationYour initial base compensation will be
$150,000 per annum, earned and payable on the 15th and last day of each month
through automatic deposit to the Bank of your designation. You are also eligible
to participate in the Company's stock option plan. I would propose a five year
option to purchase 250,000 shares at a price of $0.65 cents or such price as is
acceptable under the TSX-V regulations and subject to regulatory approval.

Vacation EntitlementNGP directly links vacation
entitlement to years of service as per the detailed provisions of the Employee
Handbook. Recognizing your tenure with other employers, your initial annual
entitlement will be four (4) weeks to be taken at mutually convenient time for
the Company. Additionally, the Company recognizes a total of ten (10) paid
statutory holidays per year.

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BenefitsThe Company offers in a group benefit
program as outlined below. Fifty {50%) of the cost of the program will be
covered by the Company.

- Basic and Optional Life Insurance
- Accidental Death & Dismemberment (ADD)
- Long term disability
- Extended healthcare
- Dental care

Moving and Living Expenses

The Company will pay actual household moving costs (Toronto
home sales commission, BC tax on home acquisition, and moving company costs) up
to a maximum of $125,000 and will pay $1250 of costs towards interim Vancouver
accommodations for a period of 9 months. Our expectation is that you will be
fully relocated by May 31, 2008 and that you will manage your travel during this
transitional period around the need for your full and conscientious attention to
Nevada Geothermal Power Inc. business priorities. During the relocation period
you will be entitled to one travel day per month in addition to holiday time for
you to travel to Toronto to visit your family. The Company will reimburse half
your flight expenses (or flights for your family members) to a maximum of
$500/mo.

Following your household move to Vancouver and the Company
paying the relocation expense, if you should resign from your employment before
May 31, 2009 you will reimburse the Company its relocation costs.

Change of ControlIn the event of a change of control
where you are terminated you will be entitled to twelve (12) months pay. If you
elect to resign within six (6) months of a change of control you will be
entitled to six (6) months pay.

Severance without CauseYou will be entitled to 8
months severance increasing 1 month per year of service to a maximum of 12
months. The severance package is to be effective from December 1, 2007.

I very much look forward to working with you. If you have any
questions, please do not hesitate to contact me.

|Sincerely,            | Accepted,            
|--------------------- | ---------------------
|/s/ Brian D. Fairbank | /s/ Andrew T. Studley
|Brian D. Fairbank     | Andrew T. Studley    
|President and CEO     |                      

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