Ormat Technologies (ORA) is the latest beneficiary to emerge from a rising trend toward contracted geothermal power. On Feb. 17, ORA said it signed a portfolio power purchase agreement (PPA) for up to 150 MW with NV Energy to support GOOGL’s data centers in Nevada under the utility’s Clean Transition Tariff. The multisite projects that leverage ORA’s established expertise in conventional geothermal development are scheduled to come online from 2028-30.
According to Enverus Intelligence® Research (EIR) analysis, ORA leads all operators in federal geothermal leasing with roughly 182,000 acres secured, giving it optionality as premiums rise in selective lease sales.
Its largest position is paired with an average bid of about $47 per acre, more than double the long-term historical average of $20.49. In a market where premiums are rising, ORA has already locked in at scale.
Our research determined that proximity to high-voltage transmission and growing data center load have become the strongest drivers of bid pricing, even ahead of geothermal gradient. Nevada, which accounts for roughly 80% of the Bureau of Land Management’s geothermal acreage, sits at the intersection of resource quality and western U.S. data center demand.
The most recent GOOGL agreement validates ORA’s strategy. The company is not scrambling for late-cycle leases at $400 per acre as it controls a deep inventory of prospective acres in the most active state. That gives ORA flexibility to phase development as hyperscalers’ appetite for power grows.
This blog offers just a glimpse of the powerful analysis Energy Transition Research delivers on the trending themes, don’t miss the full picture.
DID YOU KNOW?
Excluding Alaska’s 2008 Mount Spurr outlier, federal geothermal bids rarely exceeded $50/acre until recently. By October 2024, high offers in Nevada reached $202/acre and top prices surged past $400/acre as competition intensified.
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Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. See additional disclosures here.
