Ormat Signs Its Largest Power Purchase Agreement to Date 20-Year Agreement with Southern California Edison for 50 MW with Option to Increase

Ormat Signs Its Largest Power Purchase Agreement to Date
20-Year Agreement with Southern California Edison for 50 MW with Option to Increase

RENO, Nevada, July 2, 2007 - Ormat Technologies, Inc. (NYSE: ORA) today announced that it has signed a 20-year power purchase agreement (PPA) with Southern California Edison (SCE) to purchase 50 megawatts (MW) of clean energy output from the Brawley I Project, which is currently under construction in Imperial County, California, by Ormat. The PPA includes an option to increase capacity to 100 MWs at Ormat's discretion, and is subject to the approval of the California Public Utilities Commission (CPUC).

The PPA results from a 2006 request for proposal from SCE. The power rate agreed upon will not exceed the 2006 Market Price Referent as approved by the CPUC.

Dita Bronicki, Chief Executive Officer of Ormat said, "It could not be more appropriate that this milestone agreement marking our largest PPA to-date is with Southern California Edison, our largest customer and a strong supporter of clean energy production."

When completed, the Brawley I Project will increase the total output supplied from Ormat to SCE to approximately 190 MW.

"This is one of the largest contracts SCE is entering into as part of its 2006 solicitation. It is an important part of meeting our renewable energy goals," said Pedro Pizarro, senior vice president, Power Procurement, Southern California Edison. "We are very pleased that our counterparty is Ormat Technologies – a good business partner and leader in the renewable energy industry. SCE had been procuring geothermal power from Ormat-developed projects for the last 20 years and we consider them an exceptional supplier of green base load energy."

"SCE's continued commitment to increasing production from clean energy sources is evident in this agreement, which provides enough clean power to serve approximately 50,000 homes for an entire year," Mrs. Bronicki continued. "We value SCE's recognition that Ormat produces geothermal energy efficiently, reliably and cost effectively. During our 20+ years of working together, SCE has proven itself a noteworthy partner and a true advocate for a cleaner environment. We share in SCE's dedication to reduce harmful greenhouse gas emissions and will continue to grow our relationship to further our mutual goal."

About Ormat TechnologiesOrmat Technologies, Inc. is a vertically-integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal and recovered energy power plants using Organic Rankine Cycle (ORC) technology .Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power generating equipment, and provides related services. Ormat is a pioneer and a leader in the manufacture of ORC power equipment its products and systems are covered by approximately 70 patents. Ormat currently operates the following geothermal power plants: in the United States – Brady, Heber, Mammoth, Ormesa, Puna and Steamboat; in the Philippines – Leyte; in Guatemala – Zunil; in Kenya – Olkaria; and in Nicaragua – Momotombo. In the U.S., Ormat owns and operates four OREG1 Recovered Energy Generation plants.

Safe Harbor Statement
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 12, 2007.

These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.