Ormat Achieves Higher Electricity Prices: Ormat Extends Power Purchase Agreements for Geothermal Power Plant in California

Reno (USA) - The geothermal and renewable energy specialist Ormat Technologies has extended its power purchase agreements for the Casa Diablo IV (CD4) geothermal power plant in the U.S. state of California and renegotiated them on significantly improved terms.

According to the company, existing power purchase agreements (PPAs) with energy providers Central Coast Community Energy (3CE) and Silicon Valley Clean Energy (SVCE) were renegotiated as part of a so-called “blend-and-extend” strategy.

The revised contracts cover a total capacity of 15 megawatts (MW) from the 35-MW power plant, which is part of Ormat’s Mammoth geothermal complex. The agreements, originally signed in 2022, have been extended by five years to 2037. At the same time, the agreed electricity price will increase by about 27 percent compared to the previous terms, according to the company. The new contract conditions will take effect on October 1, 2026.

In addition to the extended term, the contractually guaranteed capacity has also been slightly increased: both off-takers will each purchase 7.5 MW in the future instead of the previous 7 MW. The remaining output from the power plant will continue to be sold to the Southern California Public Power Authority.

Ormat CEO Doron Blachar described the contract amendment as an important step in securing long-term revenues at an early stage. By renegotiating existing power purchase agreements at current market prices, the company improves the economic foundation of its assets while also strengthening partnerships with regional energy suppliers. In view of rising electricity demand, the agreement also contributes to ensuring a reliable supply of renewable energy.

Ormat is one of the world’s leading companies in the geothermal sector. The company develops, builds, and operates power plants that utilize geothermal energy and recovered heat, and it has installed or developed global capacity of around 3,600 MW. In addition to geothermal energy, Ormat is also expanding its business in energy storage and solar power. Its own power generation fleet currently totals about 1,755 MW, most of which comes from geothermal plants in the United States as well as several international markets.

The Ormat share, which is listed in the global renewable energy stock index RENIXX, is currently trading at €93.32.

Source: IWR Online, 12 Mar 2026