Ormat Commences Commercial Operation of Bottleneck Storage Facility in California, Delivering 80MW/320MWh of Energy Storage Capacity
Ormat Technologies (NYSE: ORA) has commenced commercial operations of its largest energy storage facility, the Bottleneck project, in California's Central Valley. The 80MW/320MWh Battery Energy Storage System will provide services to San Diego Gas & Electric under a 15-year Power Purchase Agreement signed in 2022. The project qualifies for a 40% Investment Tax Credit, which the company plans to monetize by year-end. With this addition, Ormat now operates 270MW/638MWh of storage projects and has six more under construction totaling 355MW/920MWh, progressing toward its 2028 portfolio capacity target of 950MW-1050MW/2.5GWh-2.9GWh.
Ormat Technologies (NYSE: ORA) ha avviato le operazioni commerciali della sua più grande struttura di stoccaggio energetico, il progetto Bottleneck, nella Valle Centrale della California. Il sistema di stoccaggio di energia in batteria da 80MW/320MWh fornirà servizi a San Diego Gas & Electric sotto un contratto di acquisto di energia di 15 anni firmato nel 2022. Il progetto è idoneo per un credito d'imposta sugli investimenti del 40%, che l'azienda prevede di monetizzare entro la fine dell'anno. Con questa aggiunta, Ormat gestisce ora progetti di stoccaggio per un totale di 270MW/638MWh e ha altri sei attualmente in costruzione per un totale di 355MW/920MWh, procedendo verso il suo obiettivo di capacità per il portafoglio del 2028 di 950MW-1050MW/2,5GWh-2,9GWh.
Ormat Technologies (NYSE: ORA) ha comenzado las operaciones comerciales de su mayor instalación de almacenamiento de energía, el proyecto Bottleneck, en el Valle Central de California. El sistema de almacenamiento de energía en batería de 80MW/320MWh proporcionará servicios a San Diego Gas & Electric bajo un contrato de compra de energía de 15 años firmado en 2022. El proyecto califica para un crédito fiscal de inversión del 40%, que la empresa planea monetizar a finales de año. Con esta adición, Ormat ahora opera proyectos de almacenamiento que suman 270MW/638MWh y tiene seis más en construcción que totalizan 355MW/920MWh, avanzando hacia su objetivo de capacidad de cartera para 2028 de 950MW-1050MW/2.5GWh-2.9GWh.
오르마트 테크놀로지스 (NYSE: ORA)는 캘리포니아 중앙 계곡에 위치한 가장 큰 에너지 저장 시설인 보틀넥 프로젝트의 상업 운영을 시작했습니다. 80MW/320MWh 배터리 에너지 저장 시스템은 2022년에 체결된 15년 전력 구매 계약에 따라 샌디에이고 가스 및 전기 회사에 서비스를 제공할 예정입니다. 이 프로젝트는 40%의 투자세액 공제를 받을 자격이 있으며, 회사는 연말까지 이를 활용할 계획입니다. 이 추가로 오르마트는 현재 270MW/638MWh의 저장 프로젝트를 운영하고 있으며, 현재 공사 중인 355MW/920MWh의 프로젝트가 6개 더 있습니다. 이는 2028년 포트폴리오 용량 목표인 950MW-1050MW/2.5GWh-2.9GWh에 다가가는 과정입니다.
Ormat Technologies (NYSE: ORA) a lancé les opérations commerciales de sa plus grande installation de stockage d'énergie, le projet Bottleneck, dans la vallée centrale de Californie. Le système de stockage d'énergie par batterie de 80MW/320MWh fournira des services à San Diego Gas & Electric dans le cadre d'un contrat d'achat d'énergie de 15 ans signé en 2022. Le projet est éligible à un crédit d'impôt à l'investissement de 40%, que la société prévoit de monétiser d'ici la fin de l'année. Avec cet ajout, Ormat exploite désormais des projets de stockage totalisant 270MW/638MWh et a six autres en construction, totalisant 355MW/920MWh, progressant vers son objectif de capacité de portefeuille pour 2028 de 950MW-1050MW/2,5GWh-2,9GWh.
Ormat Technologies (NYSE: ORA) hat den kommerziellen Betrieb seiner größten Energiespeichereinrichtung, dem Bottleneck-Projekt, im kalifornischen Central Valley aufgenommen. Das 80MW/320MWh Batterie-Energiespeichersystem wird unter einem 15-jährigen Stromabnahmevertrag, der 2022 unterzeichnet wurde, Dienstleistungen für San Diego Gas & Electric erbringen. Das Projekt kommt in den Genuss eines 40%igen Investitionssteuergutschrift, die das Unternehmen bis Ende des Jahres monetarisieren will. Mit dieser Ergänzung betreibt Ormat nun 270MW/638MWh an Speicherprojekten und hat sechs weitere im Bau, die insgesamt 355MW/920MWh ergeben und somit auf das Ziel von 950MW-1050MW/2,5GWh-2,9GWh für das Portfolio im Jahr 2028 hinarbeiten.
- Commenced operations of largest 80MW/320MWh energy storage facility
- Secured 15-year Power Purchase Agreement with SDG&E
- Qualifies for 40% Investment Tax Credit
- Expanded total operational storage capacity to 270MW/638MWh
- Additional 355MW/920MWh under construction across six projects
- None.
Insights
The successful launch of the 80MW/320MWh Bottleneck BESS facility marks a significant milestone for Ormat's energy storage expansion strategy. The 15-year PPA with SDG&E provides stable, long-term revenue visibility and improved margins. The project's eligibility for a
The facility increases Ormat's operational storage capacity to 270MW/638MWh, with an additional 355MW/920MWh under construction. This aggressive expansion positions Ormat to capitalize on California's growing energy storage market, driven by the state's renewable energy transition. The strategic location in the Central Valley optimizes grid integration and market opportunities.
The project strengthens Ormat's competitive position in the energy storage sector and accelerates progress toward their 950MW-1050MW 2028 portfolio target. The long-term contract structure and improved margins should positively impact the company's financial performance and market valuation.
RENO, Nev., Oct. 28, 2024 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. (NYSE: ORA), a leading renewable energy company, announces the successful commencement of commercial operations for its largest energy storage facility, the Bottleneck project. This 80MW/320MWh Battery Energy Storage System (BESS), located in the Central Valley of California, will provide energy, capacity, and ancillary services to San Diego Gas & Electric (SDG&E) under a 15-year Power Purchase Agreement (also known as a Tolling Agreement) signed in 2022.
The Bottleneck project is expected to be eligible for a
Doron Blachar, CEO of Ormat Technologies, stated, “We are happy to announce the commencement of operations at Ormat’s Bottleneck Battery Storage Facility. This milestone reflects our dedication to expanding our energy storage portfolio in strategic U.S. markets while improving our profitability. With the addition of Bottleneck, we now operate 270MW/638MWh of storage projects and we have six additional projects currently under construction with a total capacity of 355MW/920MWh, demonstrating our strong development capabilities and commitment to achieving our 950MW-1050MW/2.5GWh-2.9GWh 2028 portfolio capacity target.”
Blachar continued, “The addition of the Bottleneck project, supported by a 15-year PPA, brings long-term contracted revenues with improved margins to our Storage segment. We look forward to continuing to support the state of California with our premium renewable power generation and energy storage solutions as the state continues to advance towards its clean energy goals.”
ABOUT ORMAT TECHNOLOGIES
With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,400MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,500MW with a 1,230MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 270MW energy storage portfolio that is located in the U.S.
ORMAT’S 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. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, market and industry developments and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. 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. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under "Risk Factors" as described in Ormat’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 23, 2024, and in Ormat’s subsequent quarterly reports on Form 10-Q that are filed from time to time with the SEC.
These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
| Ormat Technologies Contact: Smadar Lavi VP Head of IR and ESG Planning & Reporting 775-356-9029 (ext. 65726) slavi@ormat.com | Investor Relations Agency Contact: Alec Steinberg or Joseph Caminiti Alpha IR Group 312-445-2870 ORA@alpha-ir.com |
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