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US Energy Market: Ormat Technologies Signs 10-Year Geothermal PPA With Calpine Energy Solutions For up to 15 MW

Reno, USA - Ormat Technologies Inc., a leader in geothermal energy and energy storage, has signed a 10-year Power Purchase Agreement (PPA) with Calpine Energy Solutions, one of North America's largest utilities.

Under the agreement, Calpine Energy Solutions will purchase up to 15 MW of electricity from the Mammoth 2 geothermal power plant near Mammoth Lakes, California.

Energy deliveries under the PPA are scheduled to begin in the first quarter of 2027, replacing the existing PPA agreement with Southern California Edison Company (SCE). According to Ormat, the new power purchase agreement with Calpine Energy Solutions includes an increase in production capacity and a higher price.

"Now more than ever, it’s critical to have a robust network of strategic partners, like Ormat, that focus on alternative and renewable geothermal supply-side technologies that ensure our retail clients can procure customized, scalable energy strategies that are aligned to their unique cost, risk, and carbon goals," Sean Fallmer, president of Calpine Energy Solutions, commented on the agreement.

"Ormat remains on track to meet its long-term targets for generation capacity growth in our Electricity segment. This new PPA with its significantly improved economics, underscores not only the robust growth in renewable power demand but also the market’s trust in our leading geothermal capabilities," adds Ormat CEO Doron Blachar.

Ormat's share price fell by 3.8 per cent to EUR 63.32 (22 January 2025, closing price, Stuttgart Stock Exchange) on the first three trading days of what has been a weak trading week for renewable energy stocks.



Source: IWR Online, 23 Jan 2025

 


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