Ormat Technologies, Inc. (NYSE: ORA) has announced that it has signed a 20-year power purchase agreement with Southern California Edison (SCE). The agreement is for the sale of energy to be produced by a new plant that will be built in Imperial Valley, California. The plant is expected to come on line by mid 2012 and is expected to have a total output of 30 megawatts. The agreement includes an option to increase capacity to 100 megawatts.
This agreement stems from a 2007 request for proposal from SCE and it is subject to approval by the Public Utilities Commission of California (CPUC).
"The agreement for the new Imperial Valley Power Plant is the eighth such agreement between Ormat and SCE, and the second executed since the enactment of California's aggressive renewable portfolio standard legislation," said Ormat Technologies CEO Dita Bronicki.
In May, Ormat signed a 20-year agreement with Nevada Power Company, for the sale of energy produced from the Grass Valley Geothermal Power Plant. That contract has recently received the approval the Public Utilities Commission of Nevada.