Ormat Technologies Signs 20-Year Power Purchase Agreement With CC Power for Up to 125 MW of Geothermal Capacity
Ormat Technologies (NYSE:ORA) has signed a 20-year Power Purchase Agreement (PPA) with California Community Power, aimed at enhancing renewable energy projects in California and Nevada. The agreement will start delivering energy in the second quarter of 2024, with the full portfolio expected online by the end of 2026. This move aligns with California's mandate for clean energy, requiring electricity distributors to procure energy sources with an 80% capacity factor and zero on-site emissions. Ormat continues to expand its geothermal and energy storage capabilities to meet growing renewable energy demands.
- Execution of a long-term 20-year PPA with California Community Power enhances Ormat's renewable project portfolio.
- Energy deliveries set to commence in Q2 2024, indicating positive future revenue generation.
- Aligns with California's clean energy mandates, positioning Ormat favorably in the renewable energy market.
- None.
PPA agreement highlights Ormat’s growing development of renewable power projects in California and Nevada regions
RENO, Nev., June 01, 2022 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE:ORA), a leading geothermal, energy storage, solar PV and recovered energy power company, today announced the execution of a Power Purchase Agreement (PPA) with California Community Power (CC Power), a Joint Powers Agency consisting of numerous California Community Choice Aggregators (CCAs).
Energy deliveries under the portfolio PPA are expected to start in the second quarter of 2024, with the expectation that the entire portfolio covered under the new PPA will be online by the end of 2026. The portfolio PPA covers a term of 20 years and is comprised entirely of new projects currently under construction or in development in Nevada and California.
This PPA marks the successful contract negotiation following Ormat’s response to CC Power’s 2021 Request for Offers for Firm Clean Resources. This RFO was issued immediately following the California Public Utilities Commission (CPUC) requirement that electricity distributors procure long lead-time clean energy resources to address mid-term reliability. This decision has mandated the procurement of new generation with at least an
“Ormat is thrilled to execute this portfolio PPA with CC Power and its members. This collaboration is another example of the benefits of geothermal as a reliable source of sustainable baseload energy,” said Doron Blachar, CEO of Ormat Technologies. “In addition to the latest two PPAs we recently signed with NV Energy, this twenty-year PPA will enable Ormat to continue executing upon our multi-year growth trajectory. We are very pleased to help the western states meet their renewable energy goals and believe geothermal offers a reliable alternative to baseload needs as the United States moves towards a more sustainable future.”
Per Geof Syphers, the Chair of CC Power, “Developing reliable baseload power is critical for California’s power reliability. The state’s CCAs are doing this with renewable geothermal power. What this partnership with Ormat confirms is that California has the ability to make progress quickly, especially with CCAs driving the procurement of clean energy and storage.”
ABOUT ORMAT TECHNOLOGIES
With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,200 MW of gross capacity. In addition, Ormat is expanding its activity into energy storage services, solar Photovoltaic (PV) and solar PV plus energy storage. Ormat’s current total generating portfolio is 1.1 GW with 1,025 MW of geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and an 83 MW energy storage portfolio that is located in the U.S.
ABOUT CALIFORNIA COMMUNITY POWER
California Community Power is a Joint Powers Agency comprised of ten California Community Choice Aggregators (CCAs) including: Central Coast Community Energy, CleanPowerSF, East Bay Community Energy, Peninsula Clean Energy, Redwood Coast Energy Authority, San José Clean Energy, Silicon Valley Clean Energy, Sonoma Clean Power and Valley Clean Energy. The agency allows its member CCAs to combine their buying power to procure new, cost-effective clean energy and reliability resources to continue advancing local and state climate goals. California Community Power members represent over 3 million customers across more than 145 municipalities spanning from Humboldt County to Santa Barbara County. Learn more at cacommunitypower.org.
ORMAT’S SAFE HARBOR STATEMENT
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, market and industry developments and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under "Risk Factors" as described in Ormat’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022, and in Ormat’s subsequent quarterly reports on Form 10-Q and annual reports on Form 10-K that are filed from time to time with the SEC.
These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
| Ormat Technologies Contact: Smadar Lavi VP Head of IR and ESG Planning & Reporting 775-356-9029 (ext. 65726) slavi@ormat.com | Investor Relations Agency Contact: Sam Cohen or Joseph Caminiti Alpha IR Group 312-445-2870 ORA@alpha-ir.com |
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