Ormat Technologies has executed its first direct power purchase agreement, committing to supply carbon-free geothermal energy to Switch data centers under a 20-year contract. The agreement covers delivery of up to 150 MW of baseload capacity from Ormat’s existing Nevada facilities, with first deliveries scheduled for mid-2027. Financial terms include a fixed price escalation of 2.5% per annum and performance guarantees tied to a 98% availability threshold. The deal strengthens ORA’s presence in the corporate renewables market and diversifies its revenue streams by adding a counterparty with investment-grade credit metrics.

Ormat has been awarded the Telaga Ranu Geothermal Working Area by Indonesia’s Ministry of Energy and Mineral Resources following a competitive tender involving four bidders. The concession grants ORA development rights through 2030 for a site in Halmahera under the country’s highest approved feed-in tariff, supporting up to 40 MW of new baseload capacity. Management projects the project will add to a 200 MW exploration pipeline, boosting ORA’s total net capacity to approximately 1,735 MW globally. Development is expected to begin in 2027, with first steam production targeted by late 2029, aligning with Indonesia’s plan to displace diesel generation and strengthen regional energy security.