PROJECT BACKED BY LONG-TERM RESOURCE ADEQUACY CONTRACT AND INCLUDED IN PREVIOUSLY ANNOUNCED HYBRID TAX EQUITY PARTNERSHIP
Ormat Technologies Inc. (NYSE: ORA) (the “Company” or “Ormat”), a leading geothermal and renewable energy company, today announced the commencement of commercial operations at the Shirk energy storage facility, an 80MW/320MWh Battery Energy Storage System (BESS) located in Visalia, California.
The Shirk facility secures capacity under a 15-year Resource Adequacy Purchase and Sale Agreement (RA Agreement) with the City of Riverside, supporting grid reliability and helping meet California’s growing demand for flexible energy resources. The project represents another milestone in Ormat’s continued expansion of a stable and profitable energy storage portfolio.
The Shirk project qualifies for a 40% Investment Tax Credit (ITC), which the Company plans to monetize the tax benefits as part of the hybrid tax equity partnership with Morgan Stanley Renewables, Inc. that Ormat announced in May 2025, which supports the funding and optimization of the Company’s growing energy storage portfolio.
Doron Blachar, Chief Executive Officer of Ormat Technologies, stated, “We are pleased to announce the commencement of operations at the Shirk Energy Storage Facility, another important milestone in the continued growth of our energy storage platform. This project further demonstrates our ability to develop and deliver large-scale storage assets that provide critical reliability services to the grid while supporting California’s clean energy transition.”
Blachar continued, “With long-term contracted revenues and the ability to monetize the project’s tax benefits through our previously announced hybrid tax equity partnership, Shirk strengthens the profitability and long-term visibility of our energy storage segment while advancing our strategy of building a diversified portfolio of contracted storage assets.”
