Ormat Gains Approval for PPA Amendments Between Puna Geothermal Venture and Hawaiian Electric

Ormat Technologies, Inc. has received Hawai’i Public Utilities Commission’s (HPUC) approval of two final amendments to the Power Purchase Agreement (PPA) between its subsidiary, Puna Geothermal Venture (PGV), and Hawaiian Electric.

This decision allows PGV to add up to an extra 8 megawatts (MW) of clean, dispatchable renewable power to Hawai’i Island, raising the contract’s maximum capacity to 46 MW, with a minimum contracted capacity set at 30 MW. This approval comes subsequent to PGV’s completion and submission of its final Environmental Impact Statement (EIS) for operations in Puna, Hawai’i. The EIS was a prerequisite set by the HPUC for the approval of an amended and restated PPA, initially presented to the HPUC in December 2019.

The amended and restated PPA merges two existing agreements into a single contract lasting until 2052. This approval secures fixed energy rates, independent of oil prices, providing PGV a stable revenue stream and ensuring ratepayers consistent energy costs throughout the contract duration. As part of this arrangement, older generation units will undergo decommissioning, replaced by three advanced, efficient generating units from Ormat. The updated PPA will take effect after the operation of the new state-of-the-art units, expected 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,” added 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.”