Ormat and Eastland Generation Limited (EGL) have signed an agreement for the development of a 50MW geothermal power plant in New Zealand. According to the agreement, Ormat will design, buil, commission and own the power plant, while EGL will execute operation and maintenance services under a second services arrangement.
EGL also plans to buy 100% of the plant's generation through a fixed price power purchase agreement (PPA). Following the conditions of the development agreement, Ormat will also offer EGL the option to acquire the facility itself at an agreed purchase price and according to certain conditions.
The project is expected to not only expand Ormat's portfolio in New Zealand but support the country's greenhouse gas emissions reduction targets.
For more information on geothermal power projects in New Zealand, please visit EICDataStream.