Geothermal power station. Featured Image: N.Minton/Shutterstock.com
Nevada-based geothermal energy company Ormat Technologies Inc (NYSE:ORA) is poised to sign a 150-MW power purchase agreement (PPA) for a portfolio of new and existing geothermal power plants.
Ormat said today it has received the final approval required for entering into the PPA with Southern California Public Power Authority (SCPPA). The contract, expected to be signed in the coming weeks, calls for SCPPA to buy power from 150 MW of capacity, with a minimum of 135 MW and potential maximum of 185 MW.
The 26-year PPA has a fixed price of USD 75.5 (EUR 67.3) per MWh. Supplies are expected to start in the fourth quarter of 2017, with the whole portfolio is expected to become operational by the end of 2022. SCPPA will resell all the power to the Los Angeles Department of Water and Power (LADWP).
The PPA covers nine primary facilities, including projects currently under construction or development and existing geothermal power plants that will start deliveries to SCPPA once their current PPAs end. The deal also covers 16 secondary facilities.
"We are very excited to receive the final approval for this first portfolio PPA, which has a unique structure supporting Ormat’s long-term plans to grow our geothermal business domestically," commented Ormat chief executive Isaac Angel.