Ormat Technologies secures approval for PPA amendments

Ormat Technologies (ORA) announces Hawai’i Public Utilities Commission’s approval of two final amendments to the Power Purchase Agreement between its subsidiary, Puna Geothermal Venture, and Hawaiian Electric (HE). This landmark decision enables PGV to contribute up to an additional 8 megawatts 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 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.