Ormat Technologies has signed a Power Purchase Agreement (PPA) with the Southern California Public Power Authority (SCPPA). Under the PPA, SCPPA will purchase 16 megawatts of power generated by the expected 30-megawatt Casa Diablo-IV (CD4) geothermal project located in Mammoth Lakes, Calif. SCPPA will resell the output to the City of Colton.
The CD4 power plant will be the first geothermal power plant built within the California Independent System Operator (CAISO) balancing authority in the past 30 years. The 16 megawatts of energy deliveries under the PPA will begin no later than the end of 2021 with an extension option. The PPA is for a term of 25 years and has a fixed price of $68 per megawatt hour. Ormat intends to sell the balance of 14 megawatts to other offtakers or at the spot market.
Isaac Angel, CEO of Ormat Technologies, said, “This strategic PPA supports Ormat’s long-term plans to grow our geothermal business domestically. CD4 Project is a new state-of-the-art air-cooled binary geothermal facility that is renewable and will have no CO2 emissions, will provide resource adequacy and ancillary benefits. CD4 will allow the City of Colton to meet its clean energy standards while also ensuring grid reliability.”
“The Colton Electric Department looks forward to taking delivery of energy from a geothermal facility as the cornerstone of our renewable resources,” said Colton Mayor Frank Navarro. “CD4 will be a long-term, renewable resource with no greenhouse gas emissions and will provide resource adequacy capacity and energy at an affordable price to Colton’s ratepayers. CD4 will provide almost 25 percent of Colton’s annual energy supplies. This power purchase agreement with Ormat for CD4 demonstrates Colton’s commitment to a green economy with affordable energy prices for our citizen’s while committing to zero-emission sustainable resources.”
