News

Ormat secures 15-year PPA for Heber South geothermal plant

Ormat secures 15-year PPA for Heber South geothermal plant Heber geothermal complex, Imperial Valley, California (source: Ormat)
Alexander Richter 12 May 2021

Ormat Technologies has signed a 15-Year power purchase agreement with Clean Power Alliance for its Heber South geothermal power plant in California.

Ormat Technologies has announced having signed a 15-year power purchase agreement (PPA) with the Clean Power Alliance (CPA), which is the fifth largest electricity provider in California and the single largest provider of 100% renewable energy to customers in the nation. Under terms of the agreement, effective January 1, 2022, CPA will purchase 14 MW of clean, renewable energy from Ormat’s Heber South Geothermal facility located in Imperial Valley, CA. The CPA Board of Directors approved the PPA during its May 6 meeting. This 14 MW of baseload geothermal power is expected to advance CPA’s greenhouse gas emission reduction goals while enhancing overall reliability for CPA’s more than one million southern California customer accounts.

The PPA replaces the original PPA with Southern California Public Power Authority (SCPPA), which had a shorter remaining duration and was subject to an early termination option. This is Ormat’s first contract with CPA, creating the potential for additional agreements in the future as CPA pursues aggressive goals to provide renewable energy to southern California.

Doron Blachar, CEO of Ormat Technologies, said, “This agreement establishes a mutually productive relationship with CPA, a recognized leader in the renewable sector, and gives Ormat additional security through a longer-term PPA than our prior agreement. Ormat will add 14 MW of renewable energy to CPA’s already diverse energy portfolio, enabling CPA to power 19,400 homes and bringing CPA closer to meeting its regulatory obligations under SB 100 and SB 350, which requires that 65% of Renewables Portfolio Standard (RPS) procurement be sourced from long-term contracts beginning in 2021.”

“Partnering with Ormat Technologies is a great fit for Clean Power Alliance as the Southern California Heber South facility will allow us to provide renewable geothermal electricity to our customers when the sun isn’t shining or the wind isn’t blowing,” said Ted Bardacke Executive Director of Clean Power Alliance. “This is a win for the environment and a win for grid reliability.”

Location of the Heber geothermal plant complex, Imperial Valley, California (ThinkGeoEnergy Map)

Source: Company release via GlobeNewswire