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Ormat Technologies Inc. has signed a 10-year Power Purchase Agreement (PPA) with Calpine Energy Solutions, one of North America’s largest energy suppliers. Through this agreement, Calpine Energy Solutions will procure up to 15 megawatts (MW) of clean, renewable energy from the Mammoth 2 geothermal power plant near Mammoth Lakes, California, to meet the energy needs of its retail portfolio. The energy deliveries, set to begin in the first quarter of 2027, will replace the current power purchase agreement (PPA) with Southern California Edison Company (SCE). The new PPA not only increases production capacity but also reflects a higher price point, underscoring the growing demand for carbon-differentiated electricity in California. This demand is driven by the state’s Renewable Portfolio Standards (RPS) compliance requirements and rising voluntary commitments from corporations seeking cleaner energy sources. Sean Fallmer, President, Calpine Energy Solutions explained, “Now more than ever, it’s critical to have a robust network of strategic partners, like Ormat, that focus on alternative and renewable geothermal supply-side technologies that ensure our retail clients can procure customized, scalable energy strategies that are aligned to their unique cost, risk, and carbon goals.” Doron Blachar, Chief Executive Officer of Ormat Technologies, commented, “We are excited to partner with Calpine Energy Solutions to provide them with reliable zero emission power from our Mammoth 2 geothermal facility. Under this agreement, Ormat will add up to 15MW of geothermal energy to Calpine Energy Solutions, reinforcing their commitment to further supporting their clients in reaching their sustainability goals. Ormat remains on track to meet its long-term targets for generation capacity growth in our Electricity segment. This new PPA with its significantly improved economics, underscores not only the robust growth in renewable power demand but also the market’s trust in our leading geothermal capabilities.” |
