(SeeNews) - Jan 22, 2014 - US geothermal power firm Ormat Technologies Inc (NYSE:ORA) said today it had added 15 years to the power purchase agreement (PPA) for its 24-MW Zunil geothermal power plant in Guatemala.
Under the extended deal with Guatemala’s state power company Instituto Nacional de Electrificacion (INDE), the PPA will now end in 2034 instead of 2019. Furthermore, the amendment transfers from INDE to Ormat the operation and management responsibility in exchange for a higher power purchase tariff. Meanwhile, INDE has taken advantage of an option under the PPA to take a 3% stake in the Zunil geothermal power station.
The plant has been producing power since 1999, but is currently operating at about 50% its installed capacity as a result of insufficient geothermal resource supply. Ormat intends to boost the heat supply in order to gradually lift the plant’s output, subject to monitoring and assessment of the geothermal reservoir.
Early this month Ormat said it had put on stream the 16-MW Don A Campbell geothermal complex in the state of Nevada.