Ormat Technologies Inc., a global leader in geothermal and renewable energy, has commenced commercial operations at its Lower Rio energy storage facility in Texas. The 60MW/120MWh Battery Energy Storage System (BESS) is now delivering energy and ancillary services under a seven-year tolling agreement, boosting Ormat’s U.S. storage capacity to 350MW/778MWh.
In a parallel milestone, Ormat secured its first Hybrid Tax Equity deal with Morgan Stanley Renewables, Inc., monetizing the 40% Investment Tax Credit (ITC) for the project. The transaction brought in $25 million in proceeds, advancing the company’s target of unlocking $160 million in tax benefits this year.
“This achievement highlights our commitment to expanding our Energy Storage portfolio in key U.S. markets,” said Doron Blachar, CEO of Ormat Technologies. “The tolling agreement provides fixed, long-term revenues while reducing portfolio risks, aligning with our strategy to accelerate growth and profitability.”
The Lower Rio project marks Ormat’s first tolling agreement in Texas, signaling the company’s deeper push into U.S. energy storage markets amid rising demand for grid stability solutions.
With over six decades of experience, Ormat is the only vertically integrated geothermal and recovered energy generation company. Its global portfolio now totals 1,618MW, including 1,268MW of geothermal and solar generation spread across the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe.
The company continues to leverage its expertise in geothermal technology to diversify into energy storage and solar PV, strengthening its long-term growth trajectory in the clean energy sector.
