RENO, Nev., Jan. 22, 2014 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE:ORA) announced today its indirect, wholly owned subsidiary signed an amendment to the power purchase agreement (PPA) with Instituto Nacional de Electrificacion (INDE) for its Zunil geothermal power plant in Guatemala. The amendment extends the term of the PPA from 2019 to 2034.
The PPA amendment also transfers operation and management responsibilities of the Zunil geothermal field from INDE to Ormat for the term of the amended PPA in exchange for a tariff increase. Additionally, INDE exercised its right under the PPA to become a partner in the Zunil power plant with 3% equity interest.
Zunil geothermal power plant was built by Ormat and started operation in 1999. Currently the power plant generates approximately 50 % of its installed capacity due to lack of sufficient geothermal resource supply. Ormat plans to improve the heat supply to gradually increase generation, subject to monitoring and assessment of the geothermal reservoir. Ormat expects this improvement will increase the energy portion of revenues, which are paid based on actual generation.
Dita Bronicki, chief executive officer of Ormat said, "We are proud to have the opportunity to improve the performance of the Zunil power plant and extend the PPA term of the project for an additional 15 years. This supports our confidence in Guatemala's economy and the potential of the Zunil geothermal field. The hard work and dedication of our plant's operation team, consisting entirely of skilled local employees, combined with our experienced geothermal resource development team will ensure the sustainable operation of additional clean, base-load power to Guatemala's grid."
About Ormat Technologies, Inc.
With over four decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company solely engaged in geothermal and recovered energy generation (REG). The company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter—a power generation unit that converts low-, medium- and high-temperature heat into electricity. With over 82 U.S. patents, Ormat's power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has over 500 employees in the United States and about 600 overseas. Ormat's flexible, modular solutions for geothermal power and REG are ideal for the vast range of resource characteristics. The company has engineered, manufactured and constructed power plants, which it currently owns or has supplied to utilities and developers worldwide, totaling over 1750 MW of gross capacity. Ormat's current generating portfolio of 595 MW (net) is spread globally in the U.S., Guatemala and Kenya.
Ormat's Safe Harbor Statement
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2013.
These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Ormat Technologies Contact: Dita Bronicki CEO 775-356-9029 email@example.com Investor Relations Contact: Rob Fink/Brad Nelson KCSA Strategic Communications 212-896-1206 (Fink)/212-896-1217 (Nelson) firstname.lastname@example.org / email@example.com
Source:Ormat Technologies, Inc.