Ormat Technologies (Ormat) has signed a long-term, 150-MW geothermal Power Purchase Agreement (PPA) with Nevada utility NV Energy to support the data center operations of Google in Nevada. The agreement established a portfolio structure that support the development of a series of new geothermal power projects across Nevada beginning 2028 through 2030.
The PPA is enabled through NV Energy’s Clean Transition Tariff (CTT), a mechanism that allows utilities and large energy users like Google to invest in advanced technologies in clean energy generation while fully covering all costs associated with their electric service. A PPA under this mechanism had previously been signed between Google, NV Energy, and Fervo Energy. The PPA is subject to approval by the Public Utilities Commission of Nevada (PUCN).
A scalable model for increasing clean energy supply to the grid
“AI is fundamentally increasing electricity demand across the technology sector, and geothermal power is uniquely positioned to deliver the reliable, carbon-free power required to support that growth,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “The combination of this PPA and its favorable terms, together with the extension of the geothermal tax credit provided through the OBBBA framework strengthens our ability to execute our long-term growth strategy and create substantial shareholder value.
“We are proud to partner with Google and NV Energy on this agreement, as Ormat’s leading capabilities in geothermal energy production will serve to strengthen Nevada’s clean-energy leadership while supporting our own growth in geothermal.”
The portfolio-based PPA provides long-term revenue structure for Ormat’s new geothermal projects across Nevada. These projects will be added to the portfolio as they reach commercial operations, beginning as early as 2028 and expected to continue through 2030. Per the PPA structure, the contract term begins with the first geothermal project achieving commercial operations and extends 15 years beyond the final project’s commercial operations date, offering long-duration stability for both companies while enabling efficient multi-site development planning.
“The momentum of the Clean Transition Tariff through this agreement with NV Energy, Google and Ormat demonstrates a proven, scalable model for large customers to partner with utilities and technology providers to bring new clean capacity to the grid,” added Briana Kobor, Head of Energy Market Innovation, Google.
“By adding up to 150MW of new clean-firm geothermal capacity in Nevada, we are utilizing a repeatable framework that fully covers all costs associated with our electric service, ensuring the CTT insulates other ratepayers while strengthening the reliability of the local power system.
Source: Ormat Technologies
