OME Inks a Power Purchase Agreement with CC Power
Open Mountain Energy LLC (OME), a subsidiary of Kaishan Group, which owns, develops, and operates geothermal energy projects in the US, recently signed a Power Purchase Agreement (PPA) with California Community Power (CC Power), a Joint Power Agency consisting of various California Community Choice Aggregators. The PPA was negotiated and agreed to following OME’s response to CC Power’s 2021 Request for Offers for Firm Clean Resources. The RFO was issued in response to the California Public Utilities Commission’s mandate to address mid-term reliability which set a procurement target of 1,000 MW for clean, firm resources such as geothermal.
The PPA between OME and CC Power is for 13 MW (net) delivered from OME’s Fish Lake geothermal project in Nevada. The contract term is for 20 years with the power plant expected to commence energy deliveries by mid-2024. OME’s Fish Lake project area is expected to have an additional 10-17MW of potential beyond this initial 13 MW that will be delivered to CC Power. This PPA is the third long-term PPA signed by OME with a California-based counterparty.
“As a baseload resource, renewable geothermal power is an important part of keeping California’s power clean and reliable in the future. This contract is a near-term solution to providing needed reliability in a sustainable way,” said Geof Syphers, Chair of CC Power.
Open Mountain Energy is a subsidiary of Kaishan Group. Kaishan Group is a geothermal independent power producer and an equipment supplier of modular power plants, with plants in operation and/or development in Indonesia, US, Hungary, Turkey and Kenya. In the US, its Wabuska project has been in operation for over four years, and its 12.5 MW Star Peak project is expected to be commissioned in July of 2022. Both of these projects previously entered into long-term PPA’s with Southern California Public Power Authority (SCPPA).