Ormat Signed Historic 25-Year Power Purchase Agreement With Dominica Electricity Services Ltd.
Portfolio Pulse from Benzinga Newsdesk
Ormat Technologies, Inc. (NYSE:ORA) has signed a 25-year Power Purchase Agreement with Dominica Electricity Services Ltd. for a 10 MW geothermal power plant in Dominica, expected to be operational by 2025. The project aligns with Ormat's growth plans and will utilize operational synergies with its Bouillante power plant in Guadeloupe. The development will increase Ormat's Caribbean capacity to 35 MW and support regional transition from fossil fuels. Ownership of the plant will transfer to the Dominica government at the end of the term.
December 06, 2023 | 1:13 pm
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POSITIVE IMPACT
Ormat Technologies signed a 25-year PPA with DOMLEC for a geothermal power plant in Dominica, enhancing its growth and regional presence in renewable energy.
The signing of a long-term PPA is a significant positive development for Ormat, as it ensures stable revenue for the company over the agreement period. The project's alignment with Ormat's growth strategy and the potential for operational synergies with its existing facilities are likely to be viewed favorably by investors. The news demonstrates Ormat's commitment to expanding its renewable energy footprint, which could lead to increased investor confidence and a potential short-term uplift in the stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100