Ormat Technologies announced a 27 % increase in the price of its power purchase agreement for the 35 MW CD4 geothermal plant in Nevada, with the new rates taking effect on October 1, 2026. The amendment expands the contracted capacity to 15 MW—7.5 MW for Central Coast Community Energy and 7.5 MW for Silicon Valley Clean Energy—while extending the original 10‑year term (signed in 2022, expiring 2032) to a 15‑year term through 2037.
The change reflects Ormat’s blend‑and‑extend strategy, which proactively re‑contracts existing PPAs before expiration to capture higher prevailing rates. The 27 % price lift is driven by growing demand from data‑center operators for reliable, carbon‑free baseload power, a segment that has become a key tailwind for the company’s geothermal portfolio.
Financially, the amendment is expected to raise revenue and improve gross margin for the CD4 plant, strengthening Ormat’s earnings mix without requiring new capital investment. The higher rates will increase cash flow from an existing asset, enhancing profitability and providing greater revenue visibility for the electricity segment.
CEO Doron Blachar said, "We are pleased to announce the approval of the blend‑and‑extend amendment for our CD4 power plant. This milestone reflects the successful execution of our strategy to proactively recontract PPAs with our customers ahead of expiration at improved prevailing rates." He added, "These amended agreements strengthen our long‑term partnerships with 3CE and SVCE while enhancing their resource adequacy at a time when electricity demand continues to grow rapidly. The extended terms improve revenue visibility for our electricity segment and support stronger underlying pricing for the CD4 power plant."
The amendment underscores Ormat’s ability to secure high‑quality, long‑term contracts and positions the company to meet the escalating power needs of data‑center operators. It also aligns with recent PPAs, such as the 150 MW agreement with NV Energy for Google’s data centers and a separate deal with Switch, reinforcing Ormat’s leadership in the geothermal and renewable energy market.
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