Ormat Technologies, Inc. announced today that its indirect, wholly owned subsidiary has signed an amendment to the Power Purchase Agreement (PPA) with Instituto Nacional de Electrificacion (INDE) for its Zunil geothermal power plant in Guatemala. The amendment extends the term of the PPA from 2019 to 2034.
The PPA amendment also transfers operation and management responsibilities of the Zunil geothermal field from INDE to Ormat for the term of the amended PPA in exchange for a tariff increase. Additionally, INDE exercised its right under the PPA to become a partner in the Zunil power plant with 3% equity interest.
Zunil geothermal power plant was built by Ormat and started operation in 1999. Currently the power plant generates approximately 50 % of its installed capacity due to lack of sufficient geothermal resource supply. Ormat plans to improve the heat supply to gradually increase generation, subject to monitoring and assessment of the geothermal reservoir. Ormat expects this improvement will increase the energy portion of revenues, which are paid based on actual generation.
