Ormat Secures 120 MW Storage Agreements in Texas
- Ormat Technologies secures fixed revenues for 7 years with tolling agreements for 120 MW/240 MWh energy storage in Texas, expanding their ERCOT market presence.
Ormat Technologies Inc has signed tolling agreements for 120 MW/240 MWh of energy storage facilities in Texas, ensuring fixed revenues for seven years. The contracts with Equilibrium Energy mark Ormat's first such deals in the ERCOT market, securing revenues for energy and ancillary services from the Lower Rio and Bird Dog storage systems. Lower Rio is set to come online in Q2 of next year, while Bird Dog will start operations in Q4.
Both projects will receive a 40% investment tax credit under the Inflation Reduction Act. Ormat plans to operate 253 MW/473 MWh of energy storage facilities in Texas by the end of 2026, with the recent addition of the 100-MW/200-MWh Louisa project. CEO Doron Blachar stated that these agreements de-risk a significant portion of Ormat's Texas storage portfolio, aligning with their strategy to enhance profitability and drive growth.
What are the key details of Ormat Technologies' energy storage agreements in Texas?
- Ormat Technologies Inc has signed tolling agreements for 120 MW/240 MWh of energy storage facilities in Texas with Equilibrium Energy
- The contracts ensure fixed revenues for seven years and mark Ormat's first such deals in the ERCOT market
- The agreements secure revenues for energy and ancillary services from the Lower Rio and Bird Dog storage systems
- Lower Rio is expected to come online in Q2 of next year, while Bird Dog will start operations in Q4
- Both projects will receive a 40% investment tax credit under the Inflation Reduction Act
- Ormat plans to operate 253 MW/473 MWh of energy storage facilities in Texas by the end of 2026, including the recent addition of the 100-MW/200-MWh Louisa project
- CEO Doron Blachar stated that these agreements de-risk a significant portion of Ormat's Texas storage portfolio, aligning with their strategy to enhance profitability and drive growth.