Ormat signs 25-year PPA for planned Casa Diablo IV geothermal plant in California
Ormat Technologies has signed a 25-year PPA with Southern California Public Power Authority for 16 MW of its planned 30 MW Casa Diablo IV geothermal power plant in Casio, California.
In a release today, Ormat Technologies Inc. (NYSE: ORA) announced the signing of a Power Purchase Agreement (PPA) between a subsidiary of the Company and Southern California Public Power Authority (SCPPA). Under the PPA, SCPPA will purchase 16MW of power generated by the expected 30MW Casa Diablo-IV (CD4) geothermal project located in Mammoth Lakes, California. SCPPA will resell the output to the City of Colton.
The CD4 power plant will be the first geothermal power plant built within the California Independent System Operator (CAISO) balancing authority in the last 30 years. The 16MW of energy deliveries under the PPA will begin no later than the end of 2021 with an extension option. The PPA is for a term of 25 years and has a fixed price of $68 per MWh. Ormat intends to sell the balance of 14MW to other off-takers or at the spot market.
Isaac Angel, CEO of Ormat Technologies said, “This strategic PPA supports Ormat’s long-term plans to grow our geothermal business domestically. CD4 Project is a new state-of-the-art air-cooled binary geothermal facility that is renewable and will have no CO2 emissions, will provide resource adequacy and ancillary benefits. CD4 will allow the City of Colton to meet its clean energy standards while also ensuring grid reliability. We are delighted to be chosen again by SCPPA and greatly appreciate their confidence in Ormat.”
“The Colton Electric Department looks forward to taking delivery of energy from a geothermal facility as the cornerstone of our renewable resources,” said, Colton Mayor, Frank Navarro. “CD4 will be a long-term, renewable resource with no greenhouse gas emissions and will provide resource adequacy capacity and energy at an affordable price to Colton’s ratepayers. CD4 will provide almost 25 percent of Colton’s annual energy supplies. This power purchase agreement with Ormat for CD4 demonstrates Colton’s commitment to a green economy with affordable energy prices for our citizen’s while committing to zero emission sustainable resources.”
Source: Company Release