Wednesday, November 11, 2009

Ormat, NV Energy sign 30MW geothermal power contract

Ormat Technologies, Inc. announced this week that it has signed a 20-year power purchase agreement (PPA) with NV Energy, Inc. for the purchase 30 megawatts (MW) from the McGinness Hills Geothermal project, which is currently under construction.

The PPA is subject to various approvals including the approval of the Public Utilities Commission of Nevada and is projected to come on line in 2012.

When completed, the McGinness Hills project will increase the total output supplied from Ormat to NV Energy, Inc. to approximately 135 MWs, helping NV Energy to meet its renewable energy requirement. Nevada's renewable portfolio standard legislation requires 15 percent of all electricity generated in the state to be derived from new renewable energy sources by the end of 2012.

Dita Bronicki, CEO of Ormat said, “We have enjoyed a long and successful relationship with NV Energy and are grateful for its support of geothermal power. This PPA is further evidence that geothermal can supply a significant amount of power and is a preferable choice given its cost effectiveness, reliability and baseload nature.”

Ormat plans to apply for federal stimulus funds to help pay for the project, including investment tax credits or performance tax credits, and an Energy Department loan guarantee to back debt financing.

The McGinness Hills project will consist of Ormat binary energy converters that re-inject the geothermal fluid produced.

Ormat Technologies is the Reno, Nevada-based subsidiary of Israel-based Ormat Industries.

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