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Ormat targets addition of around 100 MW in geothermal capacity by end of 2021

McGuinnes Hills geothermal plant, Nevada (source: Ormat)
Alexander Richter 11 Nov 2019

With 6 geothermal projects, Ormat Technologies is planning to add around 100 MW in geothermal power generation capacity in Nevada, California and Guadeloupe by the end 2021.

As part of its reports on its financial and operational results for Q3 2019, Ormat Technologies also provided an update on its ongoing project development.

In the U.S., Ormat plans to add around 90 MW in geothermal power generation capacity with the enhancement under way at its Steamboat Hills plant, the Heber complex, CD4, North Valley and the expansion of the McGinness Hills plant. For  . This include

“In Steamboat Hills, which is part of our Steamboat complex, we are replacing all of the old power plant equipment with our new advanced technology equipment. This will eventually increase the capacity of the complex by approximately 16 MW and reduce maintenance costs. Equipment is being delivered to the site and construction is on work. We expect commercial operation in 2020.”, so Isaac Angel, CEO of Ormat Technologies in an earnings call with investors.

The company has PPAs in place for four of the six projects.

Projects under way (those under construction):

  • Steamboat Hills Enhancement, Nevada, 19 MW, expected COD, PPA in place
  • Bouillante, Guadeloupe (Caribbean) 10 MW, expected COD 2021 – subject to execution of PPA
  • Heber Complex, California, 11 MW, expected COD early 2021, PPA in place
  • CD4 (Casa Diablo IV), California, 30 MW, end 2021, PPA in place
  • North Valley, California, 20-30 MW, PPA to be determined
  • McGinness Hills expansion, Nevada, 8 MW, 2021, PPA in place

While Ormat reports that it has so far not executed the PPA for its expansion of the Bouillante geothermal power plant in Guadeloupe in the Caribbean, it has secured debt financing of $18 million for the project with Société Géneralé and Banque Publique d’Investissement.

Overall, Ormat has raised $242 million in funding this year, part of that is the $59.3 m tax partnership transaction for McGinness Hills phase 3, the $18m financing for Bouillante, and $42m in unsecured notes with DEG for the recent enhancement of Olkaria III in Kenya.

Source: Ormat Investor presentation and Seeking Alpha