Ormat Technologies Expands Energy Storage Capacity in Texas with Lower Rio Facility

Ormat Technologies has begun commercial operations at its 60MW/120MWh Lower Rio energy storage facility in Texas, marking the company's commitment to expanding its energy storage segment in key US markets. The facility will deliver energy and ancillary services through a seven-year tolling agreement, growing Ormat's total US capacity to 350MW/778MWh. The US energy storage market is expected to witness a CAGR of 29.1% over 2025-2034, providing opportunities for companies like Ormat to capitalize on the rising demand.

Ormat Technologies Inc. (NYSE: ORA) has successfully begun commercial operations at its Lower Rio energy storage facility in Texas, marking a significant milestone in the company's expansion into the energy storage segment in key U.S. markets. The 60MW/120MWh Battery Energy Storage System (BESS) will deliver energy and ancillary services under a seven-year tolling agreement [1].

The Lower Rio facility is Ormat's first commercial energy storage project in Texas, and it will provide a fixed, long-term revenue stream for the company, thereby reducing risk in its expanded Texas storage portfolio. The facility's commissioning brings Ormat's total U.S. energy storage capacity to 350MW/778MWh [1].

Doron Blachar, CEO of Ormat Technologies, stated, "We are excited to announce the successful commencement of commercial operations at our Lower Rio facility. This achievement highlights our commitment to expanding our Energy Storage portfolio in key U.S. markets and demonstrates our continued leadership in both energy storage and geothermal energy production" [1].

The U.S. energy storage market is projected to grow at a CAGR of 29.1% over the 2025-2034 period, driven by increasing demand for renewable energy and the need to strengthen grids [2]. This growth presents significant opportunities for companies like Ormat Technologies to capitalize on the rising demand for energy storage solutions.

Ormat Technologies is currently constructing six additional energy storage projects with a total capacity of 385 MW/1,300 MWh in California, Texas, and New Jersey. The company has an approximate 2.9 GW/10.7 GWh pipeline of potential projects in various stages of development, aiming to reach an energy storage portfolio of 950-1,050 MW/2,500-2,900 MWh by the end of 2028 [2].

References:
[1] https://greenstocknews.com/news/nyse/ora/ormat-commences-commercial-operation-of-lower-rio-energy-storage-facility-delivering-60mw-120mwh-of-energy-storage-capacity
[2] https://www.nasdaq.com/articles/ormat-technologies-begins-lower-rio-energy-storage-facility-operation