Ormat gets PPA for Hawaiian Puna Geothermal Increased Capacity

Ormat gets PPA for Expanded Geothermal Capacity at Puna, Hawaii

Ormat Technologies, a leading renewable energy company, has achieved a significant milestone in its mission to provide clean and sustainable power to Hawaii's Big Island. Recently, the Hawai’i Public Utilities Commission (HPUC) granted approval for amendments to the Power Purchase Agreement (PPA), enabling Ormat's subsidiary, Puna Geothermal Venture (PGV), to deliver an additional 8 MW of geothermal energy to the region. This expansion brings the total geothermal capacity at Puna to 46 MW, reinforcing Hawaii's commitment to renewable energy initiatives.

The approval from HPUC comes on the heels of the successful completion of the Environmental Impact Statement (EIS) for PGV's operations in Puna, underscoring the company's dedication to environmental stewardship and compliance with regulatory standards.

One of the key highlights of the newly revised PPA is the consolidation of two existing agreements into one, extending the contract term through 2052. This move provides stability and predictability for both PGV and Hawaiian Electric, with fixed energy rates guaranteed irrespective of fluctuations in oil prices. Such assurances ensure a steady revenue stream for PGV while offering ratepayers consistent energy costs over the duration of the contract.

As part of the agreement, older generation units will be retired and replaced with three advanced and efficient generating units from Ormat. These state-of-the-art units are poised to enhance operational efficiency and reliability, with a projected operational timeline of three years post-HPUC approval.

Doron Blachar, CEO of Ormat Technologies, expressed satisfaction with the extended partnership with Hawaiian Electric, affirming Ormat's commitment to supporting Hawaii's clean energy goals. He emphasized the importance of clean energy and stated, “Ormat is pleased to extend and expand our partnership with Hawaiian Electric and continue demonstrating our ability to support the state’s energy needs."

Jim Alberts, senior vice president and chief operations officer of Hawaiian Electric, underscored the significance of PGV's role in providing firm power for over three decades. He highlighted the positive impact of the new contract on lowering and stabilizing rates for customers while reducing reliance on fossil fuels, furthering Hawaii's transition towards a sustainable energy future.

With the amendments to the PPA, PGV reaffirms its dedication to geothermal development in the region, contributing to Hawaii's broader renewable portfolio mandate goals. The expansion of geothermal capacity not only strengthens the state's energy resilience but also underscores its commitment to combating climate change through the adoption of clean and renewable energy solutions.

Ormat's achievement in securing the expanded PPA reflects its continued leadership in the renewable energy sector and its commitment to driving sustainable development in Hawaii and beyond.

Source: Robert Buluma, alphaxioms@gmail.com

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