Under the terms of the deal, SCPPA will pay a rate of $81.25 per megawatt hour to Ormat. The electricity being purchased will be sold to the Los Angeles Department of Water and Power (LADWP).

Ormat Technologies CEO Isaac Angel said: "This PPA marks our fourth PPA with SCPPA and we are delighted by our continued relationship with LADWP, the nation’s largest municipal utility."

The LADWP will receive power through NV Energy’s statewide transmission system, including one Nevada transmission line that links service areas in both northern and southern Nevada.

LADWP general manager Marcie Edwards said: "We are very pleased to partner once again with Ormat Technologies and SCPPA on the second phase of the Don A. Campbell Geothermal Power Plant, which will provide a long-term reliable renewable power supply for Los Angeles."

Construction on the second phase began recently and is expected to be completed in 2016. The plant will produce around 19MW on a yearly average basis, above the PPA nominal target of 16.2MW.

Ormat’s new joint venture investor Northleaf Capital Partners will acquire a 40% stake in the project.