Ormat Technologies Announces the Signing of Geothermal Portfolio PPA of Up to 150 MW to Support Google’s Data Center Operations Through NV Energy
Rhea-AI Summary
Ormat Technologies (NYSE:ORA) signed a long-term portfolio geothermal Power Purchase Agreement to supply up to 150 MW to support Google’s Nevada data center operations via NV Energy’s Clean Transition Tariff. Projects are expected online from 2028–2030, with PUCN approval expected in H2 2026 and a portfolio contract term that begins at first commercial operation and extends 15 years after the final project.
The agreement aims to scale multi-site geothermal development across Nevada and leverages the CTT to cover costs and insulate other ratepayers.
Positive
- Up to 150 MW geothermal capacity contracted
- Development timeline 2028–2030 for portfolio projects
- Contract term: 15 years after final project commercial operation
- Long‑duration revenue visibility via multi-project PPA with Google through NV Energy
Negative
- PPA is subject to PUCN approval, expected H2 2026
- Commercial operations begin as early as 2028, delaying cash flow realization
- Portfolio development exposes Ormat to multi‑site execution and permitting risks
Key Figures
Market Reality Check
Peers on Argus
ORA is down 1.84% while key renewable peers like BEPC, CWEN and FLNC show gains (e.g., FLNC up 7.33%). ENLT appears in momentum scans with an 8.27% move up. This points to a stock-specific reaction rather than a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 21 | Strategic investment | Positive | +3.7% | Co-led <b>$25M</b> equity investment in Sage Geosystems for next-gen geothermal. |
| Jan 15 | Project concession win | Positive | -3.2% | Awarded Telaga Ranu geothermal concession in Indonesia with up to <b>40MW</b> potential. |
| Jan 14 | Earnings call notice | Neutral | -0.6% | Announced dates and access details for Q4 and FY25 results conference call. |
| Jan 12 | Data center PPA | Positive | +3.2% | Signed 20-year PPA with Switch for ~<b>13MW</b> geothermal to power data centers. |
| Jan 06 | Project commissioning | Positive | +1.6% | Commenced commercial operation of Arrowleaf hybrid solar-plus-storage project in California. |
Recent strategic and growth-oriented announcements often saw positive price reactions, but there has been at least one notable divergence on favorable concession news.
Over the past six weeks, Ormat has reported multiple growth initiatives, including a $25M Series B co-lead investment in Sage Geosystems on Jan. 21, 2026 and the Telaga Ranu concession win in Indonesia on Jan. 15, 2026. It also signed a 20-year data center PPA in Nevada and commenced commercial operations at its Arrowleaf hybrid solar-plus-storage project, expanding its portfolio to about 1.7 GW. Today’s Google/NV Energy portfolio PPA extends that pattern of long-dated, contract-backed growth in geothermal and clean power.
Market Pulse Summary
This announcement outlines a long-term geothermal portfolio PPA with NV Energy to supply Google, covering up to 150MW of new capacity in Nevada. The structure adds projects as they reach commercial operation from 2028–2030 and extends 15 years beyond the final project’s COD, providing visibility into contracted growth. Investors may watch for Public Utilities Commission of Nevada approval in the second half of 2026 and subsequent project execution milestones.
Key Terms
power purchase agreement financial
ppa financial
clean transition tariff regulatory
AI-generated analysis. Not financial advice.
Long-Term, Contractual Portfolio PPA to Support Google’s Data Center Energy Needs, Strengthening Ormat’s Growth Strategy Beyond 2028
RENO, Nev., Feb. 17, 2026 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. (NYSE:ORA) (the “Company” or “Ormat”), a leading geothermal and renewable energy company, today announced that it has entered into a long-term geothermal Power Purchase Agreement (PPA) with NV Energy to support Google’s operations in Nevada with up to 150MW of new geothermal capacity. The PPA, which will cover a multi-project portfolio, is enabled through NV Energy’s Clean Transition Tariff (CTT) and is subject to approval by the Public Utilities Commission of Nevada (PUCN), expected in the second half of 2026. The agreement dually supports Ormat’s long-term growth strategy and trajectory, enabling the development of multiple new geothermal projects, which are expected to come online from 2028 to 2030.
The agreement establishes a portfolio structure, allowing Ormat to develop a series of new geothermal projects across Nevada. These projects will be added to the portfolio as they reach commercial operation, beginning as early as 2028 and expected to continue through 2030. Per the PPA structure, the contract term begins with the first geothermal project achieving commercial operations and extends 15 years beyond the final project’s commercial operations date, offering long-duration stability for both companies while enabling efficient multi-site development planning.
Energy delivered under the portfolio PPA is enabled by NV Energy’s Clean Transition Tariff (CTT), which creates a scalable pathway for utilities and large energy users like Google to invest in clean, reliable electricity and accelerate advanced technologies while fully covering all costs associated with their electric service. The CTT can be replicated in many U.S. electricity markets.
“AI is fundamentally increasing electricity demand across the technology sector, and geothermal power is uniquely positioned to deliver the reliable, carbon-free power required to support that growth,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “This portfolio PPA provides long-term profitable revenue growth and clear visibility into our portfolio development plans, while solidifying our conviction in the expanded exploration and drilling activities we have undertaken over the past several years that laid the groundwork for securing this significant agreement and others like it. The combination of this PPA and its favorable terms, together with the extension of the geothermal tax credit provided through the OBBBA framework strengthens our ability to execute our long-term growth strategy and create substantial shareholder value. We are proud to partner with Google and NV Energy on this agreement, as Ormat’s leading capabilities in geothermal energy production will serve to strengthen Nevada’s clean-energy leadership while supporting our own growth in geothermal.”
“The momentum of the Clean Transition Tariff through this agreement with NV Energy, Google and Ormat demonstrates a proven, scalable model for large customers to partner with utilities and technology providers to bring new clean capacity to the grid,” said Briana Kobor, Head of Energy Market Innovation, Google. “By adding up to 150MW of new clean-firm geothermal capacity in Nevada, we are utilizing a repeatable framework that fully covers all costs associated with our electric service, ensuring the CTT insulates other ratepayers while strengthening the reliability of the local power system.”
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 1,695MW with a 1,310MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 385MW 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 |
FAQ
What does Ormat's (ORA) 150 MW geothermal PPA with NV Energy mean for Google’s Nevada data centers?
When will the Ormat (ORA) geothermal projects under the portfolio PPA begin commercial operations?
Is Ormat’s (ORA) PPA with NV Energy final or conditional on approvals?
How long is the contract term for Ormat’s (ORA) geothermal portfolio PPA with Google via NV Energy?
Will the NV Energy Clean Transition Tariff (CTT) used by Ormat (ORA) be applicable elsewhere in the U.S.?
What investor impact does Ormat (ORA) cite from the Google PPA and related policies?
