Under the terms of the agreement, Ormat will design, build, commission and own the power plant. EGL will operate and maintain the power plant under a separate services arrangement and also purchase 100% of the plant's generation under a fixed-price power purchase agreement (PPA). As part of the development agreement with EGL, Ormat has granted EGL a contractual option to purchase the power plant at an agreed purchase price, subject to certain conditions.
Under this agreement, Ormat will leverage its extensive expertise and leading geothermal capabilities to design and construct a state-of-the-art geothermal power plant. The project will utilise a proven geothermal resource that has already successfully undergone field development, which will ensure its readiness for efficient operations.
The New Zealand market is of great importance to Ormat
Doron Blachar, Ormat's CEO, said: "We are thrilled to enter into a partnership with EGL to embark on the development of a 50MW power plant in New Zealand. The New Zealand market is of great importance to Ormat, as we are witnessing increased demand and attractive rising energy rates in the region - attributes that align directly with our strategic portfolio and generation capacity expansion goals. As a leading geothermal operator with equipment manufacturing and EPC expertise, we are well-positioned to contribute to the growth of New Zealand's energy sector while helping drive the transition to clean, sustainable power generation."
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