Ormat signs PPA with community choice aggregator for new 30 MW geothermal plant in California
With the signing of a PPA with community choice aggregators, Ormat Technologies will provide geothermal power to the Silicon Valley in California and beyond from its new 30 MW Casa Diablo-IV (CD4) plant in California to start operation in the end of 2021.
Ormat Technologies, Inc. has announced the signing of two similar Power Purchase Agreements (PPA) with Silicon Valley Clean Energy (SVCE) and Monterey Bay Community Power (MBCP). Under the PPAs, SVCE and MBCP will each purchase 7MW (for a total of 14 MW) of power generated by the expected 30 MW Casa Diablo-IV (CD4) geothermal project located in Mammoth Lakes, California. The PPAs are for a term of 10 years and have a fixed MWh price, which includes energy, capacity, environmental attributes, and all other ancillary benefits. The remaining 16 MW of generating capacity will be sold under an additional PPA with Southern California Public Power Authority, which was signed in early 2019.
The CD4 power plant is expected to be on-line by the end of 2021, will be the first geothermal power plant built within the California Independent System Operator (CAISO) balancing authority in the last 30 years and will be the first in Ormat’s portfolio that will sell its output to a Community Choice Aggregator.
“With these new PPAs in place, we will be offloading the full planned production capacity of the CD4 plant, further advancing Ormat’s initiative to grow our geothermal business domestically,” said Isaac Angel, CEO of Ormat Technologies. “We are hopeful that the contracts with Silicon Valley Clean Energy and Monterey Bay Community Power will be the first of many such contracts with rapidly growing communities in California. These two forward-thinking electricity providers are joining together to purchase electricity on behalf of their members, and we are excited to help deliver clean, renewable energy to advance that effort.”
“Monterey Bay Community Power looks forward to making more renewable energy available in partnership with Silicon Valley Clean Energy,” said Tom Habashi, CEO of Monterey Bay Community Power. “Ormat Technologies is a great fit because their California project helps us and our community support renewable geothermal electricity that is available for customers 24 hours a day, with zero carbon emissions.”
“Partnering with Monterey Bay Community Power and Ormat Technologies is an outstanding collaboration that secures more clean power for our communities and advances the state’s clean energy goals,” said Girish Balachandran, CEO of Silicon Valley Clean Energy. “As more communities encourage electrification to meet their emission reduction targets, this partnership provides a new, baseload renewable supply that continues to move us toward the decarbonized grid of the future.”
Source: Company release