Energy deliveries under the portfolio PPA are expected to start in the second quarter of 2024, with the expectation that the entire portfolio covered under the new PPA will be online by the end of 2026. The portfolio PPA covers a term of 20 years and is comprised entirely of new projects currently under construction or in development in Nevada and California.

This PPA marks the successful contract negotiation following Ormat's response to CC Power's 2021 request for offers (RFO) for firm clean resources. This RFO was issued immediately following the California Public Utilities Commission requirement that electricity distributors procure long lead-time clean energy resources to address mid-term reliability. This decision has mandated the procurement of new generation with at least an 80 per cent capacity factor with zero on-site emissions.

"Ormat is thrilled to execute this portfolio PPA with CC Power and its members. This collaboration is another example of the benefits of geothermal as a reliable source of sustainable baseload energy," said Doron Blachar, CEO of Ormat Technologies.

"In addition to the latest two PPAs we recently signed with NV Energy, this 20-year PPA will enable Ormat to continue executing upon our multi-year growth trajectory. We are very pleased to help the western states meet their renewable energy goals and believe geothermal offers a reliable alternative to baseload needs as the United States moves towards a more sustainable future."

Per Geof Syphers, the chair of CC Power, added: "Developing reliable baseload power is critical for California's power reliability. The state's CCAs are doing this with renewable geothermal power. What this partnership with Ormat confirms is that California has the ability to make progress quickly, especially with CCAs driving the procurement of clean energy and storage."