Global Geothermal Power: Policies, Funding, Wells, Strengths, Opportunities and Barriers Geothermal is moving into a broader investment cycle. In 2026, the story is no longer limited to volcanic power plants in a few classic markets; it now includes enhanced geothermal systems, closed-loop designs, district heating, superhot rock, lithium from brines and industrial heat. Across the United States, Canada, Germany, the United Kingdom, Australia, New Zealand, Japan, Iceland, France and Italy, the sector is being shaped by a simple question: who is de-risking the first wells, and who is ready to finance the next ones? United States: the next-generation testbed The United States has the broadest geothermal innovation ecosystem in this group, with a mature conventional base in the West and a fast-growing next-generation pipeline. The main policy signal in 2026 is the Department of Energy’s US$171.5 million funding opportunity for next-generation geothermal field-scale tests, exploration...
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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