Ormat Technologies Announces Signing of ‘Blend-and-Extend’ Amendment for CD4 Geothermal Power Plant

Core Viewpoint - Ormat Technologies Inc. has signed amendments to existing power purchase agreements (PPAs) with Central Coast Community Energy and Silicon Valley Clean Energy, resulting in a 27% increase in contract pricing and extending the contract term to 15 years, effective October 1, 2026 [2][4][5]. Group 1: Contract Amendments - The amended agreements cover a total of 15MW of contracted capacity from the Casa Diablo-IV geothermal power plant [2]. - The original PPAs, signed in 2022 and set to expire in 2032, have been extended by five years to 2037 [3]. - The contracted capacity under each agreement will increase from 7MW to 7.5MW, enhancing the total capacity with 3CE and SVCE to 15MW [4]. Group 2: Pricing and Economic Impact - Pricing under the amended agreements is approximately 27% higher than the original contracts [4]. - The amendments align with the company's "blend-and-extend" strategy, aimed at securing improved, demand-driven economics [3][5]. - The extended terms are expected to improve revenue visibility for the electricity segment and support stronger pricing for the CD4 power plant [5]. Group 3: Company Overview - Ormat Technologies is a leading geothermal and renewable energy company with over five decades of experience [6]. - The company operates a total generating portfolio of 1,755MW, including 1,340MW from geothermal and solar generation [6]. - Ormat is focused on expanding its activities into energy storage services and aims to establish a leading position in the U.S. energy storage market [6].