Ormat Signs 20-Year Power Purchase Agreement for its Wild Rose Geothermal Project in Nevada
RENO, Nev., April 29, 2013 /PRNewswire/ -- Ormat Technologies, Inc.'s (NYSE: ORA) wholly owned subsidiary entered into a 20-year Power Purchase Agreement (PPA) with Southern California Public Power Authority (SCPPA) to deliver electricity from its Wild Rose geothermal power plant in Mineral County, Nevada. When Wild Rose comes online at the end of 2013, it will mark the first time renewable energy will be delivered from Nevada to California using NV Energy's One Nevada Transmission Line.
With an estimated average generation capacity of 16 MW (net), this project together with the other two projects currently under construction – one in the Imperial Valley, California and another in Kenya – are expected to bring the company's total generating capacity to approximately 637 MW by the end of 2013. Ormat will sell the power to SCPPA at $99 per megawatt hour with no annual escalation. SCPPA will resell the power to the Los Angeles Department of Water and Power (LADWP) and Burbank Water and Power (BWP). Electricity from Wild Rose geothermal power plant will be transmitted to LADWP and BWP through NV Energy's transmission system. NV Energy's system includes the new 500 kV One Nevada Transmission Line that will connect service areas in both northern and southern Nevada. The line is expected to be operational by the end of this year.
"Securing this PPA for Wild Rose is instrumental in diversifying our growing customer base and improving the profitability of our U.S. fleet," said Yoram Bronicki, president and chief operating officer for Ormat. "We look forward to working with LADWP, the nation's largest municipal utility, and BWP to provide the residents of California access to a clean and reliable energy source."
"Given the location of the Wild Rose geothermal plant and the way it will interconnect with the transmission system, the power could ultimately serve as a replacement for coal power LADWP receives from the Intermountain Power Plant in Utah," explained Aram Benyamin, senior assistant general manager – power at LADWP. "So when you think about strategy, this could really open up the northern Nevada geothermal area and help us achieve our goal to stop using coal by 2025 and allow better integration of renewable resources in our portfolio."
In addition to providing energy and needed capacity to more than 22,000 California homes, the Wild Rose geothermal power plant will continue to provide economic development to Mineral County, Nevada through employment benefits, taxes and community contributions.
"This geothermal energy project is a result of a joint effort between Nevada and California to find mutually beneficial energy trades," said Nevada Governor Brian Sandoval. "The project provides quality jobs for Nevadans and affordable renewable energy to Californians, which is a win for everyone."
About Ormat Technologies, Inc.
With over four decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company solely engaged in geothermal and recovered energy generation (REG). The company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. With over 82 U.S. patents, Ormat's power solutions have been refined and perfected under the most grueling environmental conditions. Ormat's flexible, modular solutions for geothermal power and REG are ideal for the vast range of resource characteristics. The company has engineered and built power plants, which it currently owns or has supplied to utilities and developers worldwide, totaling approximately 1600 MW of gross capacity. Ormat's current generating portfolio of 575 MW (net) includes Brady, Brawley, Heber, Jersey Valley, Mammoth, McGinness Hills, Ormesa, Puna, Steamboat, Tuscarora, OREG 1, OREG 2, OREG 3 and OREG 4 in the U.S.; Zunil and Amatitlan in Guatemala; Olkaria III in Kenya; and, Momotombo in Nicaragua.
Ormat's Safe Harbor Statement
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2013.
These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Ormat Technologies, Inc.