Geothermal company Ormat Technologies Inc. has signed two seven-year tolling agreements with clean power company Equilibrium Energy for energy storage facilities in Texas, Nevada-based Ormat announced Aug. 15.

The agreements  mark Ormat’s first tolling agreements in the ERCOT market, the company said.

The first facility, the Lower Rio project, is expected to come online in second-quarter 2025, while the second project, Bird Dog, is expected to be operational in fourth-quarter 2025.

The agreements secure fixed revenues for the energy and ancillary services provided by the facilities. Both projects are entitled to receive a 40% investment tax credit under the Inflation Reduction Act.

"By securing fixed, long-term revenues, we have de-risked approximately 50% of our strategically expanded Texas storage portfolio, aligning with our long-term plan to improve segment profitability and accelerate our growth,” said Doron Blachar, Ormat Technologies CEO.

Ormat will also start construction on its recently announced 100 megawatt (MW)/ 200 megawatt-hour (MWh) Louisa project, which is expected to be online by the end of 2026.

The Lower Rio and Bird Dog facilities, along with Ormat's existing 33MW/33MWh merchant energy storage operation and the planned Louisa project, “will provide essential energy storage services that will help further enhance grid reliability in Texas,” Ormat said.

Comments