Ormat Technologies, a prominent player in the renewable energy sector, has recently disclosed the inking of a significant 15-year Energy Storage Service Agreement (ESSA) with San Diego Community Power (SDCP), the second-largest community choice aggregator in California. The agreement pertains to the 20MW/40MWh Pomona 2 Battery Energy Storage System (BESS), situated in Los Angeles County, California.
Having commenced operations in July 2023, the Pomona 2 project underscores Ormat’s dedication to expanding its energy storage segment by offering cutting-edge solutions and storage services. This accord signifies the second tolling agreement within the company’s growing portfolio, following the Bottleneck contract of 2022. These agreements contribute significantly to the development of a reliable, profitable, and predictable revenue stream for Ormat’s energy storage segment, with over 40% of the segment’s revenue anticipated to be contracted from the second half of 2024 onwards.
Doron Blachar, the CEO of Ormat Technologies, expressed enthusiasm about the long-term tolling agreement, emphasizing its role in augmenting Ormat’s energy storage portfolio and supporting SDCP’s commitment to delivering clean, dependable energy to its nearly one million customers. Blachar emphasized that the Pomona 2 project would help balance their merchant portfolio, ensuring more stable and profitable revenues for the storage segment. He reiterated Ormat’s view of energy storage as a pivotal, multi-year growth sector crucial for global decarbonization amid the increasing deployment of intermittent renewable energy sources during the ongoing energy transition.
Blachar conveyed the company’s dedication to expanding its energy storage portfolio and capabilities by leveraging market position and expertise. He highlighted pride in broadening their footprint in California through this second agreement with SDCP, citing California as a strategic target market for renewable energy development. Ormat aims to play a pivotal role in aiding the state in achieving its net-zero goals.
