Ormat Technologies, Inc., a leading renewable energy company, announced that it has successfully commenced commercial operations for two new battery storage facilities, adding a cumulative capacity of 43MW/43MWh. These storage assets were part of four facilities with a total capacity of 62MW/62MWh planned for the first half of 2023. The completed projects include:
The Upton project, a 23MW/23MWh Battery Energy Storage System (BESS) located in Texas, will provide energy and ancillary services to the Electricity Reliability Council of Texas (ERCOT) and support the electric grid in times of scarcity.
The Andover BESS project, a 20MW/20MWh located in New Jersey, will provide ancillary services to PJM.
The previously announced commercial operation of the 12MW/12MWh Bowling Green and 7MW/7MWh Howell BESS projects, located in Ohio and New Jersey, respectively, that provide ancillary services to PJM.
Doron Blachar, CEO of Ormat Technologies, stated "We are delighted to announce the commencement of operations of two new battery storage facilities. This achievement highlights our commitment to expanding our portfolio of energy storage assets in key U.S. markets. Ormat has successfully executed multiple complex projects overcoming supply chain challenges and met its growth target for the first half of 2023 showcasing our operational capabilities.”
Blachar further highlighted Ormat's recent accomplishments, remarking, “since the beginning of 2023, Ormat has met all Electricity Segment growth targets and successfully completed the construction or enhancement of four power plants, including the 25MW North Valley geothermal power plant, the 6 MW Brady Solar facility, the recovery of Heber 1, and the 6MW upgrade to the Dixie Valley power plant. The successful completion of these projects aligns with the company's goal of expanding its renewable power portfolio and demonstrates a total increase of 99 MW in all segments since the beginning of the year, reaching 1,257 MW.”
Blachar further emphasized the financial benefits of the storage projects, stating, “Ormat will now be able to maximize the economic advantages of these storage assets as they become eligible for Investment Tax Credits (ITC) for the first time. This eligibility allows us to claim approximately 30% of the asset value in tax credits, reducing our capital needs and enhancing earnings. We remain on track with our energy storage growth targets, with plans to bring online two additional assets in 2023 and make further progress towards achieving between 500 to 530 megawatts and over 1 gigawatt-hour in total capacity by the end of 2025. These targets support further top-line and EBITDA expansion."
