Ormat Technologies, Inc. Signs a New 20-Year PPA with Nevada Power Company for 30 MW of Geothermal Power Industry Stimulated by New Funding Options RENO, Nevada, November 9, 2009 – Ormat Technologies, Inc. (NYSE: ORA) announced that one of its subsidiaries has signed a 20-year power purchase agreement (PPA) with Nevada Power Company (a subsidiary of NV Energy, Inc.) to purchase 30 megawatts (MW) from the McGinness Hills Geothermal project, which is currently under construction. The PPA is subject to various approvals including the approval of the Public Utilities Commission of Nevada and is projected to come on line in 2012. When completed, the McGinness Hills project will increase the total output supplied from Ormat to NV Energy, Inc. to approximately 135 MWs, helping the utility to meet its renewable energy requirement. The renewable portfolio standard legislation requires 15 percent of all electricity generated in Nevada to be derived from new renewable energy sources by the end of 2012. Dita Bronicki, CEO of Ormat said, “We have enjoyed a long and successful relationship with NV Energy and are grateful for its support of geothermal power. This PPA is further evidence that geothermal can supply a significant amount of power and is a preferable choice given its cost effectiveness, reliability and baseload nature.” “Recent funding options and renewable legislation provide attractive alternatives for financing of new geothermal development,” Dita Bronicki, CEO of Ormat continued. “The McGinness project is expected to be eligible for ITC Cash grant or for PTC, and we also expect to apply for a DOE loan guaranty for its debt financing.”
The McGinness Hills project will consist of Ormat binary energy converters that re-inject the geothermal fluid produced. The project will not produce any environmentally harmful emissions while working continuously to provide power 24 hours per day, 7 days per week.
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically-integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, owns and operates geothermal and recovered energy-based power plants around the world. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power-generating equipment, and provides related services. The Company has more than four decades of experience in the development of environmentally-sound power, primarily in geothermal and recovered-energy generation. Ormat products and systems are covered by 75 U.S. patents. Ormat has built over approximately 1,200 MW of plants half for its own account and half as supplies to utilities and developers. Ormat current generating portfolio includes the following geothermal and recovered energy-based power plants: in the United States - Brady, Heber, Mammoth, Ormesa, Puna, Steamboat, OREG 1, OREG 2 and Peetz; in Guatemala - Zunil and Amatitlan; in Kenya – Olkaria III; in Nicaragua - Momotombo and in New Zealand - GDL. Ormat's Safe Harbor Statement
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 2, 2009. These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. |
