Ormat Technologies has signed a 25-year extension of its power purchase agreement (PPA) with the Southern California Public Power Authority (SCPPA). The contract covers 52 MW from the Heber 1 geothermal facility, with effect scheduled for February 2026. The renewal guarantees continuous baseload electricity supply to major industrial buyers such as the Los Angeles Department of Water and Power (LADWP) and the Imperial Irrigation District (IID), setting a contractual horizon through 2052.
Industrial operation and installed capacity
The Heber 1 plant is part of the Heber complex, recently upgraded with air-cooled technology as part of a repowering project. The complex provides a total capacity of around 91 MW of carbon-free, continuous electricity. With this extension, Ormat secures the operation of the facility for the next three decades, covering a significant share of its geothermal output dedicated to the California market.
Partnerships and regional beneficiaries
The agreement involves several public entities, notably SCPPA, which coordinates procurement for its members. Final beneficiaries include LADWP, the main municipal provider of water and power for Los Angeles, and IID, a major distributor in the Imperial Valley. Together, these entities gain stable access to a localized and controlled generation source. The contract ensures long-term service to local communities while maintaining the operational continuity of a strategic asset.
Financial visibility and revenue stability
The 25-year PPA extension provides Ormat with prolonged visibility on revenue streams. This stability is essential as the company maintains its global production portfolio, which includes geothermal and solar energy as well as storage capacity. It also strengthens its position as a reliable supplier in the sector.
Strategic implications
The agreement represents a long-term industrial asset for Ormat, enabling it to optimize the use of existing infrastructure while consolidating relationships with public buyers. It reflects a strategy based on long-term contracts to secure revenue and facilitate operational planning.
