Ormat Technologies, Inc. (ORA) has signed a 20-year power purchase agreement (PPA) with Southern California Edison (SCE) to purchase 50 megawatts (MW) of clean energy output from the Brawley I Project, which is currently under construction in Imperial County, California, by Ormat. The PPA includes an option to increase capacity to 100 MWs at Ormat’s discretion, and is subject to the approval of the California Public Utilities Commission (CPUC).
The PPA results from a 2006 request for proposal from SCE. The power rate agreed upon will not exceed the 2006 Market Price Referent as approved by the CPUC.
Dita Bronicki, CEO of Ormat said, “It could not be more appropriate that this milestone agreement marking our largest PPA to-date is with Southern California Edison, our largest customer and a strong supporter of clean energy production.”
When completed, the Brawley I Project will increase the total output supplied from Ormat to SCE to approximately 190 MWs.
“This is one of the largest contracts SCE is entering into as part of its 2006 solicitation. It is an important part of meeting our renewable energy goals,” said Pedro Pizarro, senior VP, Power Procurement, Southern California Edison. “We are very pleased that our counterparty is Ormat Technologies — a good business partner and leader in the renewable energy industry. SCE had been procuring geothermal power from Ormat-developed projects for the last 20 years and we consider them an exceptional supplier of green base load energy.”
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