Mammoth Pacific geothermal power plant, Ormat

In an announcement, Ormat Technologies Inc. reports the signing of a 10-year Power Purchase Agreement (PPA) with Calpine Energy Solutions, one of North America’s largest energy suppliers. Under this agreement, Calpine Energy Solutions will purchase up to 15 megawatts (MW) of clean, renewable energy from the Mammoth 2 geothermal power plant located near Mammoth Lakes, California, to support demand within its retail portfolio.

It is planned to start delivering power under the PPA in the first quarter of 2027 and replace an existing PPA with Southern California Edison Company (SCE). The new PPA will include an increase in production capacity and this at a higher price point. It highlights the tight supply-demand balance of carbon-differentiated electricity in California, driven by state Renewable Portfolio Standards (RPS) compliance needs and voluntary corporate demand.

Sean Fallmer, President, Calpine Energy Solutions explained, “Now more than ever, it’s critical to have a robust network of strategic partners, like Ormat, that focus on alternative and renewable geothermal supply-side technologies that ensure our retail clients can procure customized, scalable energy strategies that are aligned to their unique cost, risk, and carbon goals.”

Doron Blachar, Chief Executive Officer of Ormat Technologies, commented, “We are excited to partner with Calpine Energy Solutions to provide them with reliable zero emission power from our Mammoth 2 geothermal facility. Under this agreement, Ormat will add up to 15MW of geothermal energy to Calpine Energy Solutions, reinforcing their commitment to further supporting their clients in reaching their sustainability goals. Ormat remains on track to meet its long-term targets for generation capacity growth in our Electricity segment. This new PPA with its significantly improved economics, underscores not only the robust growth in renewable power demand but also the market’s trust in our leading geothermal capabilities.”