Geothermal and renewable energy company, Ormat Technologies, has signed a 10-year Power Purchase Agreement (PPA) with North American supplier, Calpine Energy Solutions.
The agreement enables Calpine to purchase up to 15MW of clean, renewable energy from the Mammoth 2 geothermal power plant near Mammoth Lakes, California.
The new PPA that replaces the one with the Southern California Edison Company will become applicable for energy deliveries from 2027, equipped with increased production capacities and higher price points to meet the tight supply-demand balance of carbon-differentiated electricity in California, driven by state Renewable Portfolio Standards (RPS) compliance needs and voluntary corporate demand.
Serving customised energy strategies
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 customised, 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.”