Ormat signs purchase agreement for 36 MW of geothermal energy in Kenya

Reno, Nev., April 4, 2011 — Ormat Technologies unit OrPower 4 signed a 20-year power purchase agreement amendment with Kenya Power and Lighting Co. to purchase an additional 36 MW of clean energy output from a new power plant at the Olkaria complex.

The new plant will be constructed adjacent to the existing 48 MW Olkaria III geothermal power plant near Lake Naivasha, Kenya. The new power plant is scheduled to come online in 2013.

The PPA amendment includes an option to increase the combined 84 MW capacity from the new and existing plants to up to 100 MWs subject to monitoring and assessment of the geothermal reservoir capacity.

Ormat built the first 48 MW plant in three stages in parallel to the resource development, allowing the company to advance revenue generation and long-term resource testing at commercial conditions.

The first stage commenced in August 2000 with 8 MW and was developed as part of the initial appraisal of the Olkaria III reservoir. This was followed by commercial well drilling and construction of a second and third stage to reach the 48MW target capacity, which was achieved in January 2009.

The first plant has been in continuous operation since 2000 and has achieved very high availability factors. Similar to the technology used in the existing plant, the new plant will utilize Ormat's air-cooled technology, which does not consume any water.

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