Ormat Technologies, a leading geothermal, energy storage, solar PV and recovered energy power company, today announced the execution of two Power Purchase Agreements (PPAs) between two of its subsidiaries and NV Energy. Under the first PPA, signed in 2021, NV Energy will purchase 25 MW of power over 25 years generated by the North Valley Geothermal Project, a new facility expected to come online by early 2023. Additionally, NV Energy will purchase up to 135 MW of power generated by a portfolio of the Company's new and existing geothermal power plants under a PPA signed this week. Both PPAs are subject to the Nevada Public Utility Commission’s approval.
Energy deliveries under the portfolio PPA are expected to start in the fourth quarter of 2024 and the entire portfolio is expected to be online by the end of 2028. The portfolio PPA has a contract capacity of 120 MW, with a minimum capacity of 105 MW and maximum potential capacity of 135 MW. The portfolio PPA is for a term of 25 years from the end of the final development period, ending December 31, 2053. The portfolio PPA covers facilities in northern Nevada, and is comprised of both new projects currently under construction or in development as well as existing facilities. These Nevada projects will supply renewable energy to NV Energy and help it meet its renewable energy targets while supporting increasing customer demand for round the clock clean energy. Not only will these PPAs drive the development of more clean energy to serve Nevadans, but they will also support continued partnership with the International Brotherhood for Electric Workers Local 401.
Doron Blachar, CEO of Ormat Technologies said,
“We are thrilled to execute both contracts with NV Energy, including a first of its kind energy portfolio PPA in the state of Nevada. These PPAs will enable both the development of multiple new projects as well as the sustainable operation of several of our existing geothermal power plants. NV Energy and Ormat are natural partners in promoting clean, renewable energy, and NV Energy’s commitment to a diversified portfolio of renewable energy with geothermal resources will help Nevada reach its ambitious carbon reduction goals and ensure grid reliability for customers in the northern Nevada region. Through our partnership, we expect to generate over $2.5B in overall economic value for the state and create significant job opportunities for its residents over the next 31 years.”
”We are proud to support the development of Nevada’s geothermal resources and to be bringing more clean energy to our customers,” said Dave Ulozas, NV Energy Senior Vice President of Generation. These projects will help us achieve our sustainability goals while providing safe, reliable energy.”