Ormat Technologies (Ormat) has announced the approval of the Hawai’i Public Utilities Commission’s (HPUC) of two final amendments to the Power Purchase Agreement (PPA) that enables subsidiary Puna Geothermal Ventures (PGV) to supply up to 8MW of additional clean, dispatchable renewable power to Hawai’i Island. This increases the contract maximum capacity to 46 MW with a minimum contracted capacity set at 30 MW.
The approval follows the completion of the Environmental Impact Statement of PGV for its operations in Puna, a condition set by the PUC for the approval of an amended and restated PPA.
The newly amended and restated PPA consolidates two existing agreements into one contract with a term extending through 2052. Notably, the approval guarantees fixed energy rates, de-coupled from oil prices, which ensures PGV with a stable revenue stream, and benefits ratepayers with fixed energy costs across the term of the contract.
As part of this agreement, older generation units will be decommissioned and replaced with three cutting-edge, efficient generating units from Ormat. The new PPA will be in effect following the operation of the new state-of-the-art units that are scheduled to be operational within three years post-HPUC approval.
Doron Blachar, CEO of Ormat Technologies said, “Ormat is pleased to extend and expand our partnership with Hawaiian Electric and continue demonstrating our ability to support the state’s energy needs. We’re proud of the state’s ongoing commitment to clean energy, and this amended agreement will serve to further advance Hawaii’s commendable renewable portfolio mandate goals, while ensuring minimal potential environmental impacts”
“PGV provided an important energy resource for over three decades to the island, and these amendments not only affirm our commitment to geothermal development in the region, but also allow the citizens of Hawaii to capture the benefit of implementing Ormat’s improved generation technology while moving away from dependency on volatile fossil fuel-linked energy pricing.”
“PGV has been an important partner to Hawaiian Electric for 30 years, providing firm power that’s available 24/7 and helping to make Hawai’i Island a nationally recognized leader in clean energy,” said Jim Alberts, senior vice president and chief operations officer of Hawaiian Electric. “This new contract helps ensure that customers will benefit from lower and more stable rates for decades to come while also significantly reducing our use of fossil fuels to generate electricity.”
Source: Ormat TechnologiesThe post Ormat receives PPA for expanded geothermal capacity at Puna, Hawaii first appeared on ThinkGeoEnergy - Geothermal Energy News.