Ormat Secures Approval for PPA Amendments Between Its Puna Geothermal Venture and Hawaiian Electric

Amended and restated PPA secures fixed energy rate, PPA extension and project expansion

Approval of amended PPA supported by completion of local Environmental Impact Statement

RENO, Nev., Feb. 12, 2024 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA), a leading renewable energy company, announces Hawai’i Public Utilities Commission’s (HPUC) approval of two final amendments to the Power Purchase Agreement (PPA) between its subsidiary, Puna Geothermal Venture (PGV), and Hawaiian Electric. This landmark decision enables PGV to contribute up to an additional 8 megawatts (MW) of clean, dispatchable renewable power to Hawai’i Island, elevating the contract maximum capacity to 46 MW, with a minimum contracted capacity set at 30 MW. The approval follows PGV’s completion and submission of its final Environmental Impact Statement (EIS) for operations in Puna, Hawai’i. The EIS was a condition set by the HPUC for approval of an amended and restated PPA that was submitted to the HPUC in December 2019.

The newly amended and restated PPA consolidates two existing agreements into one contract with a term extending through 2052. Notably, the approval guarantees fixed energy rates, de-coupled from oil prices, which ensures PGV with a stable revenue stream, and benefits ratepayers with fixed energy costs across the term of the contract. As part of this agreement, older generation units will be decommissioned and replaced with three cutting-edge, efficient generating units from Ormat. The new PPA will be in effect following the operation of the new state-of-the-art units that are scheduled to be operational within three years post-HPUC approval.

Doron Blachar, CEO of Ormat Technologies said, “Ormat is pleased to extend and expand our partnership with Hawaiian Electric and continue demonstrating our ability to support the state’s energy needs. We’re proud of the state's ongoing commitment to clean energy, and this amended agreement will serve to further advance Hawaii’s commendable renewable portfolio mandate goals, while ensuring minimal potential environmental impacts. PGV provided an important energy resource for over three decades to the island, and these amendments not only affirm our commitment to geothermal development in the region, but also allow the citizens of Hawaii to capture the benefit of implementing Ormat’s improved generation technology while moving away from dependency on volatile fossil fuel-linked energy pricing.”