Ormat signs amended PPA for Casa Diablo IV geothermal power plant in California
Ormat extends the period and capacity of PPAs with two community choice aggregators for the output of the Casa Diablo IV geothermal power plant, California.
Ormat Technologies (Ormat) has announced the signing and approval of amendments to existing power purchase agreements (PPAs) with two community choice aggregators for a portion of the output from the 35-MW Casa Diablo IV (CD4) power plant, part of the Mammoth geothermal complex in California. This is part of Ormat’s strategy of pro-actively re-contracting existing agreements ahead of expiration to secure improved, demand-driven economics.
The original PPAs with Central Coast Community Energy (3CE) and Silicon Valley Clean Energy (SVCE) were initiated in 2022 and set to expire in 2032. These accounted for the purchase of a total of 14 MW, or 7 MW each for 3CE and SVCE.
The amendment now extends the contracted period from 10 years to 15 years, and increases the contracted capacity from 7 MW to 7.5 MW each. Thus, the total contracted capacity with 3CE and SVCE is now 15 MW. The pricing under the amended agreements is also about 27% higher than the original contracts.
“We are pleased to announce the approval of the blend-and-extend amendment for our CD4 power plant. This milestone reflects the successful execution of our strategy to proactively recontract PPAs with our customers ahead of expiration at improved prevailing rates,” said Doron Blachar, CEO of Ormat.
“These amended agreements strengthen our long-term partnerships with 3CE and SVCE while enhancing their resource adequacy at a time when electricity demand continues to grow rapidly. The extended terms improve revenue visibility for our electricity segment and support stronger underlying pricing for the CD4 power plant. We remain focused on securing high-quality, long-term contracts that support sustainable growth and long-term shareholder value.”
The CD4 geothermal power plant, which started operations in 2022, is the first power plant in Ormat’s portfolio to sell its output to a Community Choice Aggregator. The rest of the output is sold to the Southern California Public Power Authority under a 25-year agreement.
Source: Ormat Technologies