Ormat signs 15-year PPA with Peninsula for Heber 2 geothermal facility

Ormat Technologies, Inc. has signed a 15-year power purchase agreement (PPA) with Peninsula Clean Energy, a community choice aggregator that provides more than 3,500GW hours of electricity to San Mateo County and the City of Los Banos.
Ormat signs 15-year PPA with Peninsula for Heber 2 geothermal facility Ormat signs 15-year PPA with Peninsula for Heber 2 geothermal facility Ormat signs 15-year PPA with Peninsula for Heber 2 geothermal facility Ormat signs 15-year PPA with Peninsula for Heber 2 geothermal facility Ormat signs 15-year PPA with Peninsula for Heber 2 geothermal facility

Ormat Technologies, Inc. has signed a 15-year power purchase agreement that will see it supply energy from its Californian Heber 2 geothermal facility to Peninsula Clean Energy

Under the terms of the agreement approved by Peninsula Clean Energy's Board of Directors, effective January 1, 2023, the CCA will purchase 26MW of clean, renewable energy from Ormat's Heber 2 geothermal facility located in Imperial Valley, California, USA.

This PPA marks the successful completion of Ormat's first-ever solicitation for bids, with a request for bids (RFB) on the Heber 2 facility issued in July of 2021. The RFB was published immediately after the California Public Utilities Commission (CPUC) issued itsmid-term reliability (MTR) decision, requiring the procurement of 1,000MW of weather invariant, zero-emission, 80 per cent capacity generation by all California load-serving entities by 2026. Power from the Heber 2 facility complies with MTR guidelines, making it the first geothermal PPA to meet the new CPUC requirements.

"We at Ormat are very pleased with the success of our bid solicitation and business development efforts, as we increase the utilisation of electricity from renewable sources for the region. We're pleased to establish a relationship with Peninsula Clean Energy and help bring them closer to meeting their goal of delivering 100 per cent renewable electricity by 2025," said Doron Blachar, CEO of Ormat Technologies.

"The clean and reliable geothermal energy from Heber 2 will play a key role in meeting our sector-leading goal of achieving 24/7 renewable power for our customers by 2025," Peninsula Clean Energy CEO Jan Pepper said.

"This binary, water-cooled geothermal facility will provide us with baseload emission-free generation all year round, and provides a great complement to our growing solar and wind portfolio."

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