Ormat Technologies Extends CD4 PPAs to 15 Years with 27% Price Increase
Ormat Technologies extended its PPAs for 15 MW of output from the 35 MW Casa Diablo-IV geothermal plant with Central Coast Community Energy and Silicon Valley Clean Energy, lengthening terms by five years through 2037. Contract pricing under the amended agreements will rise by approximately 27% effective October 1, 2026.
1. Amendment Details
Ormat signed and obtained approval for blend-and-extend amendments to its existing power purchase agreements with Central Coast Community Energy and Silicon Valley Clean Energy, covering 15 MW of output from the 35 MW Casa Diablo-IV geothermal plant.
2. Capacity Increase and Pricing
Under the amendments, contracted capacity per agreement rises from 7 MW to 7.5 MW, and pricing increases by approximately 27%, with amended terms effective October 1, 2026 and extending the PPAs through 2037.
3. Strategic Implications
The extended terms enhance long-term revenue visibility, strengthen partnerships with key California community energy agencies, and align with Ormat’s proactive strategy to secure improved demand-driven economics ahead of original contract expirations.