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Ram Power/ Polaris signs LOI on PPA negotiations in Nicaragua

San Francisco del Norte, Chinandega (source: flickr/svengaarn, creative commons)
Alexander Richter 4 May 2010

Ram Power's subsidiary Polaris Geothermal has entered LOI to negotiate a PPA with Disnorte-Dissur for the company's Casita Project in Nicaragua.

In a release Ram Power, Corp.announces that it has, “through its wholly owned subsidiary Polaris Geothermal, Inc., has entered into a Letter of Intent (the “LOI”) with Disnorte-Dissur, a Gas Natural Fenosa company (“Disnorte-Dissur”) to negotiate a Power Purchase Agreement (the “PPA”) for energy that will be produced by a new geothermal power plant under development in Nicaragua.

Under the LOI, Disnorte-Dissur, an energy provider in Nicaragua, will purchase up to 157 megawatts (MW) of power to be developed from Ram Power’s Casita San Cristobal geothermal concession (the “Casita Project”). Both final capacity and power rate figures are subject to approval by the Nicaraguan Ministry of Energy and the electricity regulator. The PPA is expected to be signed in 2010.

The Casita Project is located in northwest Nicaragua in the department of Chinandega. Exploration drilling of the Casita Project is expected to begin later this year. Energy deliveries to Disnorte-Dissur will be in several phases beginning in 2013.

“Ram Power is pleased to expand our development plan by furthering the conversion from oil based power in Nicaragua into a renewable based, cost effective operation,” said Mario Arana, Director of Ram Power. “Developing the world class geothermal resources of Casita San Cristobal will not only provide jobs, but will also help reduce the cost of power for the citizens of Nicaragua.”

Mr. Arana went on to say that, “building upon our experience with the San Jacinto-Tizate Project, this agreement demonstrates the strong market demand for clean, renewable energy, as well as Ram Power’s commitment to its continued growth as an international supplier of geothermal power.”

Source: company release via Marketwatch