Geothermal

Ormat Signs 20-Year Geothermal PPA with SCE for 50 MW

Ormat Technologies, Inc. signed a 20-year power purchase agreement (PPA) earlier this week with Southern California Edison (SCE) to purchase 50 megawatts (MW) of clean energy output from the Brawley I Project, which is currently under construction in Imperial County, California, by Ormat. When completed, the Brawley I Project will increase the total output supplied from Ormat to SCE to approximately 190 MW.

When completed, the Brawley I Project will increase the total output supplied from Ormat to SCE to approximately 190 MW.

“This is one of the largest contracts SCE is entering into as part of its 2006 solicitation. It is an important part of meeting our renewable energy goals,” said Pedro Pizarro, senior vice president, Power Procurement, Southern California Edison. “We are very pleased that our counterparty is Ormat Technologies — a good business partner and leader in the renewable energy industry. SCE had been procuring geothermal power from Ormat-developed projects for the last 20 years and we consider them an exceptional supplier of green base load energy.”

The PPA results from a 2006 request for proposal from SCE. The power rate agreed upon will not exceed the 2006 Market Price Referent as approved by the CPUC.

Dita Bronicki, Chief Executive Officer of Ormat said, “It could not be more appropriate that this milestone agreement marking our largest PPA to-date is with Southern California Edison, our largest customer and a strong supporter of clean energy production.”

“SCE’s continued commitment to increasing production from clean energy sources is evident in this agreement, which provides enough clean power to serve approximately 50,000 homes for an entire year,” Bronicki continued.

Ormat Technologies, Inc. designs, develops, builds, owns and operates geothermal and recovered energy power plants using Organic Rankine Cycle (ORC) technology. The company currently operates the following geothermal power plants: in the United States — Brady, Heber, Mammoth, Ormesa, Puna and Steamboat; in the Philippines — Leyte; in Guatemala — Zunil; in Kenya — Olkaria; and in Nicaragua — Momotombo. In the U.S., Ormat owns and operates four OREG1 Recovered Energy Generation plants.