Ormat Technologies has secured a 25-year extension for its power purchase agreement (PPA) with the Southern California Public Power Authority (SCPPA), ensuring the continued supply of 52MW of geothermal energy from its Heber 1 facility in California’s Imperial Valley. The agreement, effective from February 2026, will deliver clean baseload energy to the Los Angeles Department of Water and Power (LADWP) and the Imperial Irrigation District until 2052.
The extension underscores the growing recognition of geothermal energy’s role in California’s renewable energy mix. Ormat CEO Doron Blachar highlighted the significance of the agreement, stating, “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.”
The Heber 1 geothermal power plant, a cornerstone of Ormat’s portfolio, has recently completed a repowering project incorporating advanced air-cooled technology. This upgrade has enhanced the facility’s capacity, enabling the Heber complex to provide 91MW of continuous, carbon-free electricity. The new agreement reinforces the plant’s critical role in supplying renewable energy to millions of California residents.
LADWP Power System senior assistant general manager David Hanson emphasized the strategic importance of geothermal energy, noting, “Our commitment to renewable energy is rooted in building a more resilient, sustainable future for Los Angeles. Geothermal energy plays an important role in that future — providing safe, reliable power that strengthens grid stability and reduces our dependence on fossil fuels.”
The Heber 1 power plant is expected to supply power to over 77,000 LA households, diversifying the city’s clean energy portfolio. Hanson added, “Investing in geothermal energy is not just about meeting climate goals; it’s a strategic decision that supports long-term energy security and environmental stewardship.”
This development could accelerate the adoption of geothermal energy in other regions, as the sector demonstrates its ability to provide reliable, baseload power. The extension also highlights the importance of repowering existing geothermal facilities to enhance their efficiency and capacity, potentially spurring similar upgrades in the industry. As California continues to pursue its ambitious renewable energy targets, geothermal energy is poised to play an increasingly vital role in the state’s energy landscape.