Under the contract, Ormat’s Puna Geothermal Venture agrees to provide an additional 8MW of dispatchable geothermal power at fixed prices for over 20 years, providing a valuable hedge against fluctuating oil prices that benefits Hawaii Island electric customers.
The PPA is subject to approval by the Hawaii Public Utilities Commission, with input from the Hawaii Division of Consumer Advocacy.
The construction of the power plant is substantially complete and is expected to reach full commercial operation after HELCO completes electric grid modifications by the third quarter of 2011.
HELCO president Jay Ignacio said that with long-term pricing that’s not tied to the price of oil, this contract will help stabilize electricity bills as fuel prices move higher.
