Ram Power, through its wholly-owned subsidiary Polaris Geothermal, has entered into a letter of intent (LOI) with Disnorte-Dissur, a Gas Natural Fenosa company, to negotiate a power purchase agreement (PPA) for energy that will be produced by a new geothermal power plant under development in Nicaragua.
Under the LOI, Disnorte-Dissur will purchase up to 157MW of power to be developed from Ram Power’s Casita San Cristobal geothermal concession. Both final capacity and power rate figures are subject to approval by the Nicaraguan Ministry of Energy and the electricity regulator. The PPA is expected to be signed in 2010.
The Casita project is located in northwest Nicaragua in the department of Chinandega. Exploration drilling of the project is expected to begin later this year. Energy deliveries to Disnorte-Dissur will be in several phases beginning in 2013.
Mario Arana, director of Ram Power, said: “Ram Power is pleased to expand our development plan by furthering the conversion from oil based power in Nicaragua into a renewable based, cost effective operation.
“Developing the world class geothermal resources of Casita San Cristobal will not only provide jobs, but will also help reduce the cost of power for the citizens of Nicaragua.”
Reno, Nevada-based Ram Power is engaged in the business of acquiring, exploring, developing and operating geothermal power properties.