First Phase of Sarulla Geothermal Project to Begin Commercial Operations This Month

geothermal

Ormat Technologies plans to begin commercial operations this month for the first phase of the Sarulla geothermal plant in Indonesia, Ormat CEO Isaac Angel said during a March 1 company earnings call.

The first 110-MW phase is currently under testing, he said, adding that engineering and procurement for the second phase at Sarulla has been substantially completed, and engineering, procurement and construction work for the third phase are in progress.

The Sarulla project is one of three geothermal facilities Ormat anticipates will come online this year. The 35-MW Platanares project and the 24-MW Tungsten project are expected to reach commercial operation by the end of the year, according to Angel.

Regulatory Environment

Angel said during the earnings call that it is unclear how the Trump Administration will affect renewable energy initiatives in the U.S., but the company is “confident that state level activity and interest from countries around the world remains broad.”

He said that a number of new bills were introduced in the last few weeks in an effort to stimulate the renewable enable sector in Nevada and California.

“In Nevada, the proposed bill Title AB 206 would replace the current RPS targets of 25 percent by 2020 to 50 percent by 2030 and 80 percent by 2040,” he said. “California is also stepping up to increase its already aggressive target to 100 percent on renewable by 2045, which is up from 50 percent by 2030.”

Earnings

Ormat reported total revenues for 2016 of $662.6 million, an increase of 11.4 percent over 2015. In November, Ormat issued a full-year guidance for revenues of between $637 million and $647 million.

Ormat Chief Financial Officer Doron Blachar said during the earnings call that the increase was attributable to both Ormat’s electricity and product segments, in which revenues increased by 16.1 percent and 3.5 percent, respectively, compared to 2015.

Earnings per share for 2016 were $1.87, compared to $2.43 for 2015.

Ormat expects full-year 2017 total revenues between $680 million and $700 million.

Lead image credit: Max Grabert | Flickr

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Jennifer Delony is associate editor for Renewable Energy World. She worked previously as an analyst for PennWell's TransmissionHub. Jennifer started her career as a B2B news editor in the local and long-distance telecommunications industries in the '90s. She began covering renewable energy issues at the local level in 2005 and covered U.S. and Canadian utility-scale wind energy as editor of North American Windpower magazine from 2006-2009. She...

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