Ormat Technologies Signs 20-Year PPA with Switch for ~13MW of Carbon-Free Geothermal Capacity to Power Data Centers

Rhea-AI Summary

Ormat Technologies (NYSE: ORA) signed a 20-year PPA with Switch to sell ~13MW of carbon-free geothermal power from the Salt Wells plant near Fallon, Nevada. Ormat has an option to add an ~7MW Solar PV facility to support auxiliary power. Energy deliveries are scheduled to begin in Q1 2030 after a major Salt Wells upgrade expected to finish by Q2 2026. Management cited potential for future recontracting of over 100 MW across Ormat’s fleet and sees this as a first direct data-center PPA that could enable additional long-term agreements.

Positive

• Signed a 20-year PPA with Switch for ~13MW
• Option to add an ~7MW Solar PV facility
• Energy deliveries scheduled to start in Q1 2030
• Salt Wells upgrade planned to complete by Q2 2026
• Potential recontracting opportunity of over 100 MW

Negative

• No financial terms disclosed for the PPA
• Energy deliveries begin in Q1 2030, limiting near-term revenue
• Salt Wells upgrade is a prerequisite and could delay start

News Market Reaction

+3.21%

6 alerts

+3.21% News Effect

+2.4% Peak in 11 hr 38 min

+$225M Valuation Impact

$7.24B Market Cap

1.0x Rel. Volume

On the day this news was published, ORA gained 3.21%, reflecting a moderate positive market reaction. Argus tracked a peak move of +2.4% during that session. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $225M to the company's valuation, bringing the market cap to $7.24B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

PPA term: 20 years Geothermal capacity: approximately 13 MW Solar PV option: approximately 7 MW +3 more

6 metrics

PPA term 20 years Duration of Power Purchase Agreement with Switch

Geothermal capacity approximately 13 MW Carbon-free geothermal energy to be supplied to Switch

Solar PV option approximately 7 MW Optional Solar PV facility to support Salt Wells plant

Energy deliveries start Q1 2030 Scheduled start of deliveries under the PPA

Plant upgrade completion Q2 2026 Expected completion of major Salt Wells upgrade

Recontracting potential over 100 MW Potential future recontracting of existing fleet under this framework

Market Reality Check

Price: $128.02 Vol: Volume 540,716 vs 20-day ...

normal vol

$128.02 Last Close

Volume Volume 540,716 vs 20-day average 550,927 (relative volume 0.98x) indicates typical trading activity. normal

Technical Price $119.05 is slightly above the $119.00 52-week high and trading above the 200-day MA at $91.90.

Peers on Argus

ORA gained 1.17% with several renewables peers also positive (e.g., BEPC +1.92%,...

ORA gained 1.17% with several renewables peers also positive (e.g., BEPC +1.92%, CWEN +1.61%, ENLT +2.69%, FLNC +2.33%), while RNW declined 0.92%. Scanner data did not flag a coordinated sector momentum move.

Historical Context

5 past events · Latest: Jan 06 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 06	Project commissioning	Positive	+1.6%	Arrowleaf hybrid solar-plus-storage project began commercial operations in California.
Nov 03	Earnings results	Positive	+1.4%	Q3 2025 revenue and guidance increased with strong storage and product growth.
Oct 27	Strategic partnership	Positive	+0.3%	Partnership with SLB to advance geothermal and enhanced geothermal systems.
Oct 06	Earnings conference	Neutral	+2.8%	Announcement of schedule for Q3 2025 earnings release and conference call.
Sep 02	Sustainability report	Positive	+0.2%	2024 Sustainability Report showed large CO2e avoidance and emissions intensity reduction.

Pattern Detected

Recent news and earnings items have generally been positive and followed by modest positive price reactions, indicating a pattern of aligned sentiment and price response.

Recent Company History

Over the last few months, Ormat reported several growth- and sustainability-focused milestones. On Jan 6, 2026, it commenced commercial operation of the Arrowleaf hybrid solar-plus-storage project in California, expanding its portfolio to about 1.7 GW. Q3 2025 results on Nov 3, 2025 showed revenue of $249.7M, up 17.9% YoY, and raised 2025 guidance. A strategic geothermal partnership with SLB was announced on Oct 27, 2025, and a 2024 Sustainability Report on Sep 2, 2025 highlighted significant emissions avoidance. Each event saw a positive, though measured, price reaction.

Market Pulse Summary

This announcement details a 20-year PPA with Switch for approximately 13 MW of geothermal capacity f...

Analysis

This announcement details a 20-year PPA with Switch for approximately 13 MW of geothermal capacity from Salt Wells, plus an option to add about 7 MW of Solar PV. Deliveries are planned to start in Q1 2030 after an upgrade expected by Q2 2026. In recent news, Ormat expanded its portfolio to roughly 1.7 GW and raised 2025 guidance, underscoring a growth trajectory. Investors may track execution on project timelines and further data-center-linked agreements.

Key Terms

power purchase agreement, ppa, geothermal energy, solar pv, +1 more

5 terms

power purchase agreement financial

"announced the signing of a 20-year Power Purchase Agreement (PPA) with Switch"

A power purchase agreement (PPA) is a long-term contract in which a buyer agrees to purchase electricity from a generator at an agreed price and schedule, similar to a multi-year subscription for power or a long-term lease of an energy source. Investors care because PPAs provide predictable revenue and cash flow for the generator, reduce market-price exposure, and shift credit and performance risk to the buyer, all of which affect valuation, financing and perceived investment stability.

ppa financial

"signing of a 20-year Power Purchase Agreement (PPA) with Switch"

A PPA (Power Purchase Agreement) is a long-term contract in which a buyer agrees to purchase electricity from a specific generator at agreed prices and terms. Think of it like a multi-year subscription for power that locks in supply and cost, giving the seller steady revenue and the buyer predictable energy costs. Investors care because PPAs reduce revenue uncertainty, help projects get financed, and shift exposure to energy price or supply risks, affecting a company’s cash flow and valuation.

geothermal energy technical

"highlighting Ormat’s leading capabilities in geothermal energy production"

Geothermal energy is heat drawn from beneath the Earth’s surface and converted into electricity or used directly for heating, like tapping a giant, naturally heated underground oven to run a power plant or warm buildings. It matters to investors because geothermal projects are capital-intensive up front but can deliver steady, low-cost power and long-lived income streams with low fuel risk; however, they carry exploration, drilling and permitting risks that affect returns.

solar pv technical

"adding an approximately 7MW Solar PV facility, which will serve the auxiliary"

Solar PV (solar photovoltaic) describes panels or systems that convert sunlight directly into electricity using semiconductor materials. For investors, it matters because solar PV is a primary way companies and utilities generate renewable power, affecting revenue, capital spending, project returns and exposure to policy incentives or cost changes—similar to how a factory’s machines determine its output and profitability.

baseload power technical

"securing reliable, carbon-free baseload power is essential to supporting our customers"

Baseload power is the consistent, reliable electricity output that a power plant or source can provide around the clock to meet the minimum demand on the grid, similar to a factory that runs steadily to keep essential machines humming. For investors, baseload capacity matters because it tends to produce predictable revenue, supports grid stability, and reduces the risk that production will be sidelined when demand dips, making assets and contracts tied to it easier to value.

AI-generated analysis. Not financial advice.

NEW GEOTHERMAL PPA WITH SWITCH ENHANCES THE ECONOMICS OF ORMAT’S SALT WELLS POWER PLANT

RENO, Nev., Jan. 12, 2026 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. (NYSE: ORA) (the “Company” or “Ormat”), a leading geothermal and renewable energy company, today announced the signing of a 20-year Power Purchase Agreement (PPA) with Switch, the premier provider of AI, cloud and enterprise data centers. This agreement represents Ormat’s first direct PPA with a data center operator, highlighting Ormat’s leading capabilities in geothermal energy production and the growing demand for sustainable energy solutions to serve the data center industry.

Under the terms of the agreement, Switch will purchase approximately 13MW of clean, renewable energy from Ormat’s Salt Wells geothermal power plant located near Fallon, Nevada. As part of the agreement Ormat has the option to further expand the facility’s output to Switch by adding an approximately 7MW Solar PV facility, which will serve the auxiliary power needs of the geothermal power plant. The combined output will help support the power needs of Switch’s Nevada data centers, aligning with their commitment to sustainability and carbon reduction.

Energy deliveries under the PPA are scheduled to commence in the first quarter of 2030, following the completion of a major upgrade to the Salt Wells power plant, which is expected to be finalized by the second quarter of 2026.

Doron Blachar, Chief Executive Officer of Ormat Technologies, commented, “We are excited to partner with Switch, a leader in the data center industry, to supply reliable, zero-emission power from our Salt Wells geothermal facility. This agreement not only advances Switch’s sustainability goals but also underscores the growing demand for renewable energy within the data center sector. Upon completion of the Salt Wells upgrade, we will be able to deliver approximately 13MW of geothermal energy to Switch, with the potential for further expansion through the addition of a Solar PV facility, highlighting both the enhanced revenue opportunities and strategic value of our power plants.”

Blachar concluded, “Additionally, as we launch this partnership, we see potential for future recontracting of over 100 MW of our existing fleet under this framework. We are encouraged at the opportunity to continue growing this relationship with potential PPA expansion as well as additional new agreements to supply geothermal power to Switch as they continue scaling their business into the strong demand backdrop for the data center industry and Switch’s specific capabilities.”

“We are proud to enhance our diverse portfolio of renewable, Nevada-based energy sources and deepen our commitment to powering Switch’s data centers with renewable energy through this new long-term agreement with Ormat,” said Alise Porto, SVP of Energy & Sustainability at Switch. “As demand for AI and high-performance digital infrastructure accelerates, securing reliable, carbon-free baseload power is essential to supporting our customers and sustaining our growth. Geothermal energy offers the resiliency and sustainability profile required for the next generation of AI and cloud workloads, and this partnership enhances our ability to deliver world-class performance with a minimal environmental footprint. We look forward to continuing to scale the power needs of our campuses to meet the strong demand for our data center platform.”

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.

ABOUT SWITCH

Switch, founded in 2000 by CEO Rob Roy, stands at the forefront as the leading data center campus designer, builder and operator. As the AI, cloud and enterprise data center experts, Switch provides the most modular, scalable and sustainable data centers to the most discerning clients. The company offers a comprehensive, future-proof portfolio ranging from highly dense liquid cooled AI to hyperscale cloud and the industry’s highest rated and most-secure enterprise data centers. To learn more, visit www.switch.com and follow Switch on LinkedIn, Facebook and X.

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 are the key terms of Ormat's PPA with Switch (NYSE: ORA)?

Ormat signed a 20-year PPA to sell approximately 13MW of geothermal energy to Switch, with an option to add ~7MW of Solar PV.

When will energy deliveries under the Ormat (ORA)–Switch PPA begin?

Energy deliveries are scheduled to commence in Q1 2030, following completion of the Salt Wells upgrade.

What is the timeline for the Salt Wells upgrade supporting the ORA PPA?

The Salt Wells power plant upgrade is expected to be finalized by Q2 2026, enabling later energy deliveries.

Does the Ormat–Switch agreement include additional capacity beyond 13MW?

Yes. Ormat has an option to add an ~7MW Solar PV facility to support auxiliary power and potential future expansions.

How could the Switch PPA affect Ormat’s (ORA) future contracting opportunities?

Management highlighted potential for recontracting of over 100 MW across Ormat’s fleet under this framework, suggesting pipeline upside.

Were the financial or pricing terms of the ORA PPA with Switch disclosed?

No. The announcement did not disclose financial or pricing terms for the PPA.