Ormat Technologies, Inc. (Ormat), a leading geothermal, energy storage, photovoltaic (PV), solar and recovered energy power company, has signed agreements with Eastland Generation Limited (EGL) to build a 50MW power plant in New Zealand. EGL is a subsidiary of Eastland Group Limited and a regional infrastructure company. This agreement strengthens Ormat’s presence in the thriving New Zealand market and supports the country’s growing electricity needs while advancing its greenhouse gas emissions reduction efforts.
Under the terms of the agreement, Ormat will design, build, commission and own the power plant. EGL will operate and maintain the power plant under a separate services arrangement and also purchase 100% of the plant’s generation under a fixed price Power Purchase Agreement (PPA). As part of the development agreement with EGL, Ormat has granted EGL a contractual option to purchase the power plant at an agreed purchase price, subject to certain conditions.
Under this agreement, Ormat will leverage its extensive expertise and leading geothermal capabilities to design and construct a state-of-the-art geothermal power plant. The project will utilize a proven geothermal resource that has already successfully undergone field development, which will ensure its readiness for efficient operations.
Commenting on the development, Doron Blachar, Ormat’s Chief Executive Officer, commented, “The New Zealand market is of great importance to Ormat, as we are witnessing increased demand and attractive rising energy rates in the region – attributes that align directly with our strategic portfolio and generation capacity expansion goals.”