Ormat Technologies Announces Signing of ‘Blend-and-Extend’ Amendment for CD4 Geothermal Power Plant
Rhea-AI Summary
Ormat Technologies (NYSE: ORA) signed "blend-and-extend" amendments for the CD4 geothermal power plant covering a total of 15MW (7.5MW each) of the 35MW facility and extending the original PPA terms by five years to 2037. Pricing under the amended agreements is about 27% higher, with changes effective October 1, 2026. The amended PPAs increase contracted terms from 10 to 15 years and the contracted capacity per counterparty from 7MW to 7.5MW, improving revenue visibility for Ormat's electricity segment while the remaining CD4 output continues to be sold to SCPPA.
Positive
- Contract pricing increased ~27% versus original PPAs
- Contract term extended from 2027/2032 to 2037 (five-year extension)
- Contracted capacity for 3CE and SVCE rose from 7MW to 7.5MW each, totaling 15MW
- Improved revenue visibility for the electricity segment due to longer terms and higher pricing
Negative
- Coverage limited to 15MW of the 35MW CD4 plant, constraining broader impact
- Pricing and capacity changes become effective on October 1, 2026, delaying near-term benefit realization
News Market Reaction – ORA
On the day this news was published, ORA gained 0.90%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
ORA gained 0.87% while several renewables peers showed mixed moves: BEPC +2.09%, CWEN +1.55%, ENLT +3.90% in sector data but also flagged at -5.27% in momentum scans, RNW -0.19%, FLNC +7.76%. Scanner data marked no broad same-direction sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 25 | Earnings and guidance | Positive | -9.1% | Reported 2025 revenue growth and 2026 guidance with stable profitability metrics. |
| Feb 17 | Long-term PPA signed | Positive | +5.1% | Signed geothermal PPA of up to 150MW to support Google’s data centers. |
| Jan 21 | Strategic investment | Positive | +3.7% | Announced $25M co-lead investment to advance Sage Geosystems geothermal tech. |
| Jan 15 | New concession award | Positive | -3.2% | Won Telaga Ranu geothermal concession in Indonesia with up to 40MW potential. |
| Jan 14 | Earnings call notice | Neutral | -0.6% | Announced timing and access details for upcoming Q4 and full-year 2025 call. |
Recent news has generally been positive (growth projects, PPAs, investments), but price reactions have been mixed, with some strong strategic updates sold off and others rewarded.
Over the past few months, Ormat has reported stronger 2025 results with revenues of $989.6M and announced major long-term PPAs, including up to 150MW for Google and about 13MW with Switch. It also expanded its geothermal pipeline via the Telaga Ranu concession and backed next‑generation geothermal through a $25M investment in Sage Geosystems. Despite generally constructive fundamentals, market reactions have alternated between gains and pullbacks around these updates.
Market Pulse Summary
This announcement extends and reprices long-term PPAs for 15MW of the CD4 geothermal plant, lifting contract pricing by about 27% and lengthening terms from 10 to 15 years starting October 1, 2026. It follows recent growth-oriented moves, including large PPAs and project awards, and reinforces revenue visibility in the Electricity segment. Investors may monitor future contracting activity, execution at CD4, and how these agreements support the company’s multi‑year capacity expansion goals.
Key Terms
power purchase agreements financial
PPAs financial
geothermal technical
AI-generated analysis. Not financial advice.
Amended PPA Reflects ~
Amended PPA Terms to Take Effect on October 1, 2026
RENO, Nev., March 10, 2026 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. (NYSE: ORA) (the “Company” or “Ormat”), a leading geothermal and renewable energy company, today announced the signing and approval of an amendments to the existing power purchase agreements (PPAs) with Central Coast Community Energy (3CE) and Silicon Valley Clean Energy (SVCE) for a portion of the output from the 35MW Casa Diablo-IV (CD4) geothermal power plant, part of the Company’s Mammoth geothermal complex in California. The amended agreements cover a total of 15MW of contracted capacity. The remaining output from the CD4 facility is sold to the Southern California Public Power Authority (SCPPA).
The amended agreements extend the original PPAs, which were signed in 2022 and scheduled to expire in 2032, by five additional years through 2037. The execution of these contracts is in line with the Company’s “blend-and-extend” strategy, aimed at proactively re-contracting existing agreements ahead of expiration while securing improved, demand-driven economics.
As part of the amendment, the contract term has been extended from 10 years to 15 years. In addition, the contracted capacity under each agreement will increase from 7MW to 7.5MW, bringing the total contracted capacity with 3CE and SVCE to 15MW. The increased capacity and improved pricing will become effective on October 1, 2026. Pricing under the amended agreements is approximately
Doron Blachar, Chief Executive Officer of Ormat Technologies, stated, “We are pleased to announce the approval of the blend-and-extend amendment for our CD4 power plant. This milestone reflects the successful execution of our strategy to proactively recontract PPAs with our customers ahead of expiration at improved prevailing rates. These amended agreements strengthen our long-term partnerships with 3CE and SVCE while enhancing their resource adequacy at a time when electricity demand continues to grow rapidly. The extended terms improve revenue visibility for our electricity segment and support stronger underlying pricing for the CD4 power plant. We remain focused on securing high-quality, long-term contracts that support sustainable growth and long-term shareholder value.”
ABOUT ORMAT TECHNOLOGIES
With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company, and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. 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. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,600MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,755MW with a 1,340MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 415MW energy storage portfolio that is located in the U.S.
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. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues and Adjusted EBITDA, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, legal, market, industry and geopolitical developments and incentives, demand for renewable energy, and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. 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. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under “Risk Factors” as described in Ormat’s most recent annual report, and in subsequent filings.
These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
| Ormat Technologies Contact: Smadar Lavi VP Head of IR and ESG Planning & Reporting 775-356-9029 (ext. 65726) slavi@ormat.com | Investor Relations Agency Contact: Joseph Caminiti or Josh Carroll Alpha IR Group 312-445-2870 ORA@alpha-ir.com |
