Ormat Signs Long Term Power Purchase Agreement For Geothermal Power Plant in The Caribbean

Reno, USA - Geothermal specialist Ormat Technologies has announced the signing of a 25-year power purchase agreement (PPA) with Dominica Electricity Services (Domlec) for a new 10 MW geothermal power plant in the Caribbean island nation of Dominica at the UN Climate Change Conference (COP28).

The agreement follows the successful development of the geothermal reservoir in the Roseau Valley by the government of the Commonwealth of Dominica. At the end of the contract period, the power plant will become the property of the government of Dominica. The project is scheduled to be commissioned by the end of 2025.

The new geothermal plant is located on an island adjacent to Ormat's existing Bouillante power plant in Guadeloupe. This will make it possible to benefit from operational synergies that will reduce labor costs and strengthen the economic potential of the geothermal project in Dominica, Ormat said. Looking ahead, the company plans to expand its Bouillante power plant, bringing Ormat's total generation capacity in the Caribbean to around 35 MW.

Ormat's generating portfolio currently comprises a total capacity of 1,285 MW. Of this, 1,115 MW is attributable to geothermal and solar projects located in the USA, Kenya, Guatemala, Indonesia, Honduras and Guadeloupe. In addition, Ormat has an energy storage portfolio of 170 MW in the USA.

Ormat's share price rose by 5.7 percent to EUR 65.05 in the first three trading days of this week (closing price, December 6, 2023, Stuttgart Stock Exchange). In early trading this morning, the RENIXX Group's share price is under pressure in a generally weak stock market environment; the share is currently trading down 1.4% at EUR 64.15 (09:09 a.m., 07/12/2023, Stuttgart Stock Exchange).

Source: IWR Online, 07 Dec 2023