Ormat Technologies Inc. (NYSE:ORA) experienced a notable uptick in its share price, rising 5% on Tuesday, after disclosing a long-term power purchase agreement that will underwrite the development of new geothermal capacity in Nevada to back Google’s data center operations.
The PPA, executed with NV Energy, is structured as a multi-project portfolio that can support the construction of several geothermal facilities across the state. If approved by the Public Utilities Commission of Nevada - a decision NV Energy expects in the second half of 2026 - the agreement will enable up to 150MW of new geothermal capacity to be developed.
Under the timeline outlined by Ormat, the earliest of these facilities could begin commercial operations as soon as 2028, with additional projects continuing to come online through 2030. The contractual framework is designed to provide a long revenue runway for Ormat: each project under the PPA will be covered by a 15-year contract period measured from that project’s commercial operations date.
The deal is enabled by NV Energy’s Clean Transition Tariff (CTT), a mechanism that permits large electricity users to partner with a utility to bring new clean generation onto the grid. In Google’s characterization, the arrangement represents a "proven, scalable model" for large customers to collaborate with utilities and technology providers to add clean capacity while ensuring that costs are fully covered and do not affect other ratepayers.
Ormat’s chief executive, Doron Blachar, tied the agreement to growing electricity needs in the technology sector, saying: "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."
Company materials stressed that the PPA builds on Ormat’s recent expansion of exploration and drilling activity. The firm cited favorable contract economics and the extension of the geothermal tax credit under the OBBBA framework as contributing to the commercial viability of the program and supporting the company’s growth plans beyond 2028.
Context for markets and participants
The arrangement links a renewable developer, a regulated utility tariff, and a major hyperscale data center operator through a long-dated supply contract. For Ormat, the PPA is intended to deliver predictable, long-term revenues tied to projects coming online between 2028 and 2030. For Google and NV Energy, the structure is presented as a way to expand clean capacity without shifting costs to other customers.