The Ormesa Power Plants at the East Mesa California Resource After 12 Years of Operation

Abstract

The United States Department of Energy (DOE) Loan Guaranty Program was created in 1974 with the objective of overcoming the financing risk barriers to the development and operation of projects utilizing the then newly emerging geothermal technologies. The program was to accomplish its objectives by providing for the US government to guaranty the repayment of loans for project costs of up to $100 million per project, for qualified projects and sponsors. One of the most notable successes of this visionary program was the ORMAT East Mesa Project, where a $50 million guaranteed loan for the 24 MW net Ormesa I project, was prepaid in full approximately 1 year after this loan was funded. This project was subsequently expanded, from its initial 30 MW nameplate capacity in 1986 to 72 MW nameplate capacity by 1989, with three additional incremental expansions. The successful execution of the East Mesa project established the technical and economic feasibility of large scale commercial modular binary geothermal power plants, as well as the benefits of a single integrated plant and field operations and management team. After twelve years, currently under the capable operation of FPL Energy, Inc., the four Ormesa power plants are operating at their original contractual capacity levels, demonstrating the reliability and sustainability of geothermal power generation.