California has entered a long-term agreement to expand its supply of renewable power, securing decades of stable electricity for millions of residents. The state signed a 25-year contract with Ormat Technologies to continue generating geothermal energy at the Heber 1 facility in Imperial Valley.
The deal, effective from February 2026 to 2052, ensures the ongoing delivery of 52 megawatts of geothermal power to the Southern California Public Power Authority. The energy will serve customers of both the Los Angeles Department of Water and Power (LADWP) and the Imperial Irrigation District (IID).
Unlike solar or wind power, geothermal energy produces electricity around the clock by using heat from deep within the Earth. This makes it a dependable source of renewable energy that supports California’s transition away from fossil fuels.
LADWP said the extended agreement will provide electricity for roughly 77,000 homes in Los Angeles. Heber 1 recently underwent upgrades after a 2022 fire, replacing its older cooling system with modern air-cooled technology that increases efficiency and conserves water in the dry Imperial Valley.
Together with the nearby Heber 2 plant, the two facilities will produce about 91 megawatts of renewable power — enough to serve hundreds of thousands of people across Southern California.
Headquartered in Reno, Nevada, Ormat Technologies is one of the world’s leading developers of geothermal energy technology. The company said the deal highlights geothermal’s value as a steady and sustainable energy source.
LADWP’s Senior Assistant General Manager, David Hanson, called the agreement a strategic step toward ensuring long-term energy reliability and environmental responsibility. IID Board Chairwoman Gina Dockstader also praised geothermal energy for its consistency and regional benefits.
Officials noted that expanding geothermal capacity will reduce emissions, improve air quality, and shield consumers from gas price fluctuations — helping maintain affordable energy over time.
The new deal reinforces California’s commitment to renewable energy growth, positioning the state as a leader in sustainable and resilient power generation.
