Ormat Signs Its First Tolling Agreements in Texas for Two 60MW/120MWH Energy Storage Facilities

The Lower Rio project is expected to come online in the second quarter of 2025, while the Bird Dog facility is anticipated to be operational in the fourth quarter of 2025. Both projects are entitled to receive a 40% investment tax credit under the Inflation Reduction Act. The tolling agreements secure fixed revenues for the energy and ancillary services provided by the facilities. This enabled Ormat to start construction on the recently announced 100MW/200MWh Louisa project, which is expected to be online by the end of 2026.

“These groundbreaking tolling agreements represent an important strategic milestone for Ormat’s Energy Storage business,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “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.”

The Lower Rio and Bird Dog facilities, along with Ormat’s existing 33MW/33MWh merchant energy storage operation, and the planned 100MW/200MWh Louisa project, will provide essential energy storage services that will help further enhance grid reliability in Texas.