More Power From Geothermal Energy: Ormat Secures PPA Amendment For Geothermal Power Plant Expansion

Reno, USA - Geothermal specialist Ormat's subsidiary Puna Geothermal Venture (PGV) and utility Hawaiian Electric have received approval from the Hawai'i Public Utilities Commission (HPUC) for an amendment to a geothermal power supply agreement.

According to Ormat, the amendment to the PPA allows PGV to feed in additional geothermal power from a plant capacity of up to 8 megawatts (MW). This increases the maximum capacity of the contract to 46 MW, with the minimum capacity set at 30 MW.

The approval follows the completion and submission of PGV's final Environmental Impact Statement (EIS) for the Puna operation. The EIS was a condition of the HPUC's approval of the restated PPA, which was filed with the HPUC in December 2019.

The new PPA combines two existing agreements into a single contract with a term until 2052. The approval guarantees fixed electricity tariffs that are decoupled from the oil price. Under the agreement, older power plant units will be decommissioned and replaced by three state-of-the-art, efficient geothermal power plant units from Ormat. The new PPA will come into force as soon as the new units are commissioned. It is expected to be commissioned within three years of approval by the HPUC.

"PGV has been an important partner to Hawaiian Electric for 30 years, providing firm power that’s available 24/7 and helping to make Hawai’i Island a nationally recognized leader in clean energy. This new contract helps ensure that customers will benefit from lower and more stable rates for decades to come while also significantly reducing our use of fossil fuels to generate electricity," added Jim Alberts, Hawaiian Electric's senior vice president and chief operations officer.

The Ormat share gained 2.3 percent in yesterday's trading to a price of EUR 61.05 (closing price 12.02.2024, Stuttgart Stock Exchange).

Source: IWR Online, 13 Feb 2024