Ormat Technologies has just made an exciting announcement with the extension of its Power Purchase Agreement (PPA). This contract is for the Heber 1 geothermal facility, located in Southern California’s Imperial Valley. This new agreement ensures that the facility continues to deliver clean, reliable energy to LADWP and the Imperial Irrigation District through 2052. When it passed, the extension was scheduled to go into effect in February 2026.
Heber 1 has a large footprint on California’s renewable energy landscape. It currently provides 91 megawatts (MW) of continuous, renewable carbon-free energy. This output, produced entirely during daytime hours, is key to supporting the energy needs of over 77,000 Los Angeles households. The facility is one of many properties making up the vast Heber complex. It’s essential to helping the state meet its ambitious renewable energy goals and reduce its greenhouse gas emissions.
Renewable Energy Commitment
The long-term contract further underscores Ormat’s dedication to growing renewable energy and its brand promise to deliver power sustainably. In his remarks, David Hanson, an Ormat representative, highlighted the company’s commitment to building a cleaner, greener future for the City of Los Angeles.
“Our commitment to renewable energy is rooted in building a more resilient, sustainable future for Los Angeles.” – David Hanson
With the growing demand for clean energy, Heber 1’s geothermal power production aligns with California’s transition towards greener alternatives. The facility’s ability to provide baseload energy ensures a stable supply, reinforcing the reliability of renewable sources in the state’s energy mix.
Geothermal Energy’s Role
Geothermal energy is instrumental in California’s fight against climate change and move away from fossil fuels. The approval of the amended agreement just a few weeks ago is a powerful vote of confidence in geothermal technology. It equally showcases Ormat’s prowess in delivering utility-scale renewable electricity.
Doron Blachar, CEO of Ormat Technologies, emphasized the importance of this agreement in showcasing the potential of geothermal energy.
“This previously announced agreement has now received the required approvals, which demonstrates both the promise of geothermal energy and Ormat’s ability to deliver reliable, renewable power at scale.” – Doron Blachar
As California continues to prioritize renewable energy sources, facilities like Heber 1 contribute significantly to achieving state-wide sustainability goals.
Impact on Local Communities
The Heber 1 facility does more than just provide electricity. It enhances local economies by creating jobs and fostering growth within the region. The geothermal power plant is now helping to develop community programs focused on building a culture of environmental stewardship.
As the PPA extension onboards Heber 1, it reinforces the plant’s original mission to deliver renewable energy to millions of Californians. Providing access for everyone It ensures that local residents will benefit from clean energy solutions. This action is an encouraging complement to other state efforts to boost the percentage of renewables in California’s energy mix.
