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) will deliver power and ancillary services under a seven-year tolling agreement, marking a major step in Ormat’s expansion into U.S. energy storage markets.
In addition, the company announced the successful closing of its first Hybrid Tax Equity transaction with Morgan Stanley Renewables, Inc. The deal monetizes the 40% Investment Tax Credit (ITC) available to the project, generating approximately $25 million in proceeds. Ormat said the transaction supports its goal of monetizing $160 million in tax benefits this year.
“With the Lower Rio facility now online, we are strengthening our storage portfolio in Texas while securing fixed, long-term revenues through the tolling agreement,” said Ormat CEO Doron Blachar. “This achievement aligns with our strategy to improve profitability and accelerate growth across our Energy Storage segment.”
With this addition, Ormat’s U.S. energy storage portfolio has grown to 350MW/778MWh of capacity. Globally, the company manages a generating portfolio of 1,618MW, including 1,268MW of geothermal and solar projects across the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe.
Ormat, known for six decades of geothermal expertise, has in recent years leveraged its technology and international presence to diversify into storage and solar markets. The Lower Rio milestone underscores its push to secure a leading role in the fast-expanding U.S. energy storage sector.
