(RTTNews) - Renewable energy company Ormat Technologies, Inc. (ORA) announced Wednesday it has signed a 25-year Power Purchase Agreement (PPA) with Dominica Electricity Services Ltd. (DOMLEC) for the development of a state-of-the-art 10 MW binary geothermal power plant in the Caribbean country of Dominica. The project is expected to be operational by the end of 2025.
This agreement follows the Government of the Commonwealth of Dominica's successful development of the geothermal reservoir in the Roseau Valley. At the end of the agreement term, ownership of the power plant will be transferred to the Government of the Commonwealth of Dominica.
Ormat intends to finance the development through the issuance of concessional long-term debt with a below market interest rate. This project not only strengthens the Company's global presence, but also supports its long-term growth plans.
Looking ahead, Ormat plans to expand its Bouillante power plant and, with the development in Dominica, will bring total generating capacity in the Caribbean to approximately 35 MW. The company also aims to extend its proprietary technology to neighboring islands, displacing fossil fuels in the region's electricity generation.
