Ormat Commissions the First Geothermal Power Plant in Honduras
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Ormat Technologies, Inc. announced that its 35 MW Platanares geothermal project in Honduras has commenced commercial operation.
Ormat signed a Build, Operate, and Transfer (BOT) contract for the Geotérmica Platanares geothermal project in Honduras with ELCOSA, a privately owned Honduran energy company, for 15 years from commercial operation date (COD). Geotérmica Platanares sells its power, under a 30-year power purchase agreement with the national utility of Honduras, ENEE. The project is expected to generate average annual revenue of approximately $33 million.
The Platanares power plant was built using Ormat equity funds and is expected to be refinanced with project finance debt that will be provided by the Overseas Private Investment Corporation (OPIC), the U.S. Government's development finance institution. The financing is expected to be signed and closed within a couple of months following COD and the fulfillment of certain conditions precedent set forth in the loan documents.
"The addition of Platanares, Honduras' first geothermal power plant, to our operating portfolio is an important milestone, underscoring our commitment to growing internationally," noted Isaac Angel, Chief Executive Officer "Since we started to implement our strategic plan to expand our global footprint, we have diversified our operating portfolio with three new regions and are currently operating 762 MW in six countries. We are working on multiple prospects in Africa, Asia and Central America and plan to enhance our presence where there is a potential along with solid demand for reliable geothermal power."
The Platanares geothermal project is regulated by the Law to Promote the Generation of Electric Energy by Renewable Resources, which was enacted in 2007. Under this law, the project is expected to benefit from a 10-year income tax holiday.