Ormat Technologies Inc. (NYSE: ORA) has signed a 15-year power purchase agreement (PPA) effective January 1, 2023 with Peninsula Clean Energy, a Community Choice Aggregator (CCA) that provides more than 3,500 gigawatt-hours of electricity to San Mateo County and the City of Los Banos in California. Under the agreement, the CCA will purchase 26 MW of clean, renewable energy from the Heber 2 geothermal facility located in Imperial Valley, CA.
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, as we reported. The RFB was published immediately after the California Public Utilities Commission (CPUC) issued their Mid-Term Reliability (MTR) Decision, requiring the procurement of 1,000 MW of weather invariant, zero-emission, 80% 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.
“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,” said Peninsula Clean Energy CEO Jan Pepper.