Benzinga | Aug 10, 2021 10:10AM EDT

Ormat Signs 10 MW Long Term Resource Adequacy Agreement With Pacific Gas And Electric Company; Terms Not Disclosed

Ormat Technologies, Inc.1 (NYSE:ORA) today announced that it has signed a Long-Term Resource Adequacy agreement with Pacific Gas and Electric Company (PG&E) for its 20MW/40MWh Pomona-2 facility that is currently under construction.



The Pomona 2 project will be located adjacent to and will utilize existing infrastructure from the operating Pomona 1 facility. Under the 10-year agreement, the Pomona-2 facility will provide 10MW of Resource Adequacy to PG&E and will also participate in the energy and ancillary services markets run by the California Independent System Operator (CAISO).

Ormat will undertake engineering, procurement and construction (EPC) of this project, leveraging its core EPC capabilities and expects the project to begin commercial operation by October 2022. The Pomona-2 facility will add 20MW/40MWh to Ormat's current 83MW/176MWh operating energy storage portfolio and supports Ormat's plans to add between 200-300MW of additional energy storage projects by the end of 2023.

The Long-Term Resource Adequacy agreement with PG&E was recently filed with the Public Utilities Commission (PUC) for approval.

"This agreement is a result of the California Public Utility Commission (CPUC) directive, in response to the August 2020 blackouts, that requires the three major investor-owned utilities in California to procure 1,000MW in incremental capacity by the Summer of 2022 to ensure reliable electric service in the event of an extreme weather event," commented Doron Blachar, Ormat's Chief Executive Officer. "Ormat has demonstrated the ability to secure and deploy batteries quickly, enabling customers to meet these aggressive timelines in a cost-effective and reliable way."