Ormat Technologies signs LOI for extension of Olkaria III in Kenya
In a release, “Ormat Technologies (NYSE: ORA), announces that its project subsidiary has signed a letter of intent with the off-taker, Kenya Power & Lighting Co. Ltd (“KPLC”), for further expansion of its Olkaria III power plant by up to 52 MW (from 48 MW to up to 100MW) ..
In a release, “Ormat Technologies (NYSE: ORA), announces that its project subsidiary has signed a letter of intent with the off-taker, Kenya Power & Lighting Co. Ltd (“KPLC”), for further expansion of its Olkaria III power plant by up to 52 MW (from 48 MW to up to 100MW) within the framework of the existing power purchase agreement (“PPA”). The expansion is to be developed in two phases. Phase I comprising of 36 MW within 3.5 years from finalizing the amendment to the existing PPA with an option for phase II comprising of 16 MW within 4.5 years from commercial operation of phase I. The amendment to the existing PPA is subject to applicable governmental approvals and the consent of the lenders that provided the financing to the existing power plant. Dita Bronicki, Chief Executive Officer of Ormat Technologies said, “We are excited about the opportunity to leverage the success of the existing power plant and are looking forward to working with KPLC on this project. We expect that contractual documents on the amendment to the PPA will be completed in the near future. Kenya is a proven and significant resource for geothermal energy, and it is our belief that the proposed expansion will provide Kenya with much needed renewable, dependable and cost-effective electricity.” The existing 48MW Olkaria III plant is located in Naivasha, Kenya and is comprised of two phases. The first phase of approximately 13 MW commenced commercial operations in August 2000 and the second phase of approximately 35 MW commenced operation in January 2009. The development and construction of the existing plant was funded by the Company’s own equity and upon commercial operation of the second phase, the Company has refinanced its investment through senior secured project finance loan from a group of European Development Finance Institutions arranged by Deutsche Investitions- und Entwicklungsgesellschaft mbH (“DEG”).” Source: Company release via PR Newswire