Ormat Technologies has locked in sharply higher prices for electricity from one of its California geothermal plants, extending two power contracts by five years under amended terms that took effect October 1, 2026.
The Reno-based company said the amended agreements reflect roughly 27 percent higher contract pricing than the original deals, according to a company announcement made in March 2026.
What changed in the amendment
The amendments cover output from the 35 megawatt Casa Diablo-IV plant, part of Ormat’s Mammoth geothermal complex in California.
Ormat Technologies announced the signing and approval of amendments to the existing power purchase agreements with Central Coast Community Energy and Silicon Valley Clean Energy for a portion of the output from the 35MW Casa Diablo-IV (CD4) geothermal power plant .
The amended agreements extend the original PPAs, which were signed in 2022 and scheduled to expire in 2032, by five additional years through 2037.
The contract term has been extended from 10 years to 15 years, and the contracted capacity under each agreement will increase from 7MW to 7.5MW, bringing the total contracted capacity to 15MW.
Pricing under the new terms is markedly higher than before. Pricing under the amended agreements is approximately 27% higher than under the original contracts.
The remaining output from the CD4 facility is sold to the Southern California Public Power Authority (SCPPA).
A deliberate repricing strategy
Ormat described the move as part of a broader approach to managing its contract portfolio ahead of expiration dates.
The execution of these contracts is in line with the Company’s “blend-and-extend” strategy, aimed at proactively re-contracting existing agreements ahead of expiration while securing improved, demand-driven economics.
Chief Executive Officer Doron Blachar framed the amendment as a milestone for the company’s broader strategy of securing long-term revenue visibility.
Blachar said “these amended agreements strengthen our long-term partnerships with 3CE and SVCE while enhancing their resource adequacy at a time when electricity demand continues to grow rapidly.”
The repricing comes against a backdrop of rising electricity demand across the West, driven in part by data centers and electrification.
Rising power demand has also reshaped contract talks elsewhere in the sector, including new geothermal capacity locked in by California utilities in recent months as grid operators look for firm, round-the-clock generation to complement solar and wind.
Geothermal’s growing role in grid planning
The Casa Diablo amendment lands as federal regulators and utilities nationwide grapple with how to price and plan for always-on generation sources.
Community choice aggregators like Central Coast Community Energy and Silicon Valley Clean Energy have increasingly turned to geothermal as a complement to intermittent solar, since geothermal plants can run continuously regardless of weather or time of day.
That reliability has made geothermal attractive even at higher contract prices, as buyers weigh steady output against the lower but variable output of wind and solar.
The repricing also mirrors a pattern seen across the broader power sector this year, where buyers have accepted higher costs in exchange for long-term supply certainty, a dynamic that has shown up in other utility filings, including recent rate hike requests as utilities recalibrate contracts amid shifting demand forecasts.
What comes next
The increased capacity and improved pricing will become effective on October 1, 2026.
Ormat has not disclosed the specific dollar figures behind the 27 percent increase, and the amended agreements required no further regulatory action beyond the approvals already granted by the two community choice aggregators.
The Casa Diablo-IV plant will continue operating as part of Ormat’s wider Mammoth complex, with its output split between the two CCAs and the Southern California Public Power Authority through at least 2037.
