California: Ormat Signs Power Purchase Agreement For Heber 2 Geothermal Plant

Reno, USA - US-based geothermal company Ormat has announced the signing of a 15-year power purchase agreement (PPA) with Peninsula Clean Energy.

Under the terms of the agreement, approved by Peninsula Clean Energy's Board of Directors, 26 MW of renewable power will be purchased from Ormat's Heber 2 geothermal facility in Imperial Valley, California, beginning January 1, 2023.

The power purchase agreement marks the successful completion of Ormat's first participation in a competitive bidding process. The request for bids (RFB) was published immediately after the California Public Utilities Commission (CPUC) issued their Mid-Term Reliability (MTR) Decision, requiring the procurement of 1,000 MW of weather invariant, zero-emission, 80% capacity generation by all California load serving entities by 2026.

Power from the Heber 2 plant meets the MTR guidelines, making it the first geothermal PPA to meet the new CPUC requirements.

"The clean and reliable geothermal energy from Heber 2 will play a key role in meeting our sector-leading goal of achieving 24/7 renewable power for our customers by 2025", said Jan Pepper, CEO of Peninsula Clean Energy.

Listed on the global renewable energy stock index, RENIXX World, Ormat's shares are currently trading at around 79 euros.

Source: IWR Online, 20 Apr 2022