Ormat CEO Isaac Angel: "This contract will enable us to both construct several new projects simultaneously and ensure stable activity for several existing geothermal power stations."
 |
| Isaac Angel, Ormat CEO. Photo: Eyal Izhar |
USA/Israeli geothermal energy company Ormat Technologies Inc. has signed the biggest electricity contract in its history. The contract is likely to amount to amount $95 million a year, if fully exercised.
The sale of electricity to the Southern California Public Power Authority (SCPPA) under the contract will begin in the fourth quarter of this year, and the entire portfolio is slated to be connected to the grid by the end of 2022. SCPPA will sell the entire output to the Los Angeles Water and Electricity Department.
The volume of the contract is 150 megawatts, with a minimum of 135 megawatts and a maximum potential of 185 megawatts. The contract is for 26 years, and will expire at the end of 2043. The contract bears a fixed tariff of $75.50 per megawatt-hour.
