Ormat, NV Energy Sign Power Deal

RENO, Nev.. (Clean Edge) -- Ormat Technologies (ORA Quote) recently announced a 20-year agreement to sell geothermal power to NV Energy's (NVE Quote) Nevada Power Co. unit.

Under the agreement, Nevada Power will buy 30 megawatts of energy from the McGinness Hills Geothermal project, which is currently under construction.

The McGinness Hills project is expected to increase the total output supplied from Ormat to NV Energy to approximately 135 MWs, helping the utility to meet its renewable energy requirement. The renewable portfolio standard legislation requires 15 percent of all electricity generated in Nevada to be derived from new renewable energy sources by the end of 2012.

"Recent funding options and renewable legislation provide attractive alternatives for financing of new geothermal development," said Dita Bronicki, CEO of Ormat continued. "The McGinness project is expected to be eligible for ITC Cash grant or for PTC, and we also expect to apply for a DOE loan guaranty for its debt financing."

The agreement is subject to various approvals including review by the Public Utilities Commission of Nevada and is projected to come on line in 2012.

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