Geothermal and renewable energy company Ormat announced that it has signed a power purchase agreement (PPA) to provide up to 150MW of new geothermal capacity to support Google’s data center operations in Nevada.
The agreement was through NV Energy’s Clean Transition Tariff (CTT), a structure pioneered by Google and Berkshire Hathaway Energy subsidiary NV Energy in 2024 to help accelerate the next generation of clean technologies, and facilitate investment in clean energy, while helping companies meet their climate goals.
The CTT was developed to invest in forms of energy that are more stable—firm power—from early stage technologies, such as geothermal, advanced nuclear and long-duration storage, that are poorly incentivized by current regulatory structures. The CTT structure matches clean energy generation and customer load to accelerate overall grid decarbonization.
Briana Kobor, Head of Energy Market Innovation at Google said:
“The momentum of the Clean Transition Tariff through this agreement with NV Energy, Google and Ormat demonstrates a proven, scalable model for large customers to partner with utilities and technology providers to bring new clean capacity to the grid. By adding up to 150 MW of new clean-firm geothermal capacity in Nevada, we are utilizing a repeatable framework that fully covers all costs associated with our electric service, ensuring the CTT insulates other ratepayers while strengthening the reliability of the local power system.”
According to Ormat, the portfolio structure of the new agreement will enable the company to develop a series of new geothermal projects across Nevada, which will be added to the portfolio as they reach commercial operation, beginning as early as 2028 and expected to continue through 2030. The agreement’s contract terms will begin with the achievement of commercial operations at the first geothermal project, and will extend 15 years beyond the final project’s commercial operations date.
Doron Blachar, Chief Executive Officer of Ormat Technologies, said:
“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. This portfolio PPA provides long-term profitable revenue growth and clear visibility into our portfolio development plans, while solidifying our conviction in the expanded exploration and drilling activities we have undertaken over the past several years that laid the groundwork for securing this significant agreement and others like it.
