Ormat Technologies Expands Energy Storage Footprint in California

Signs Resource Adequacy Agreements totaling 5mw/20mwh with two California Community Choice Aggregators

RENO, Nev., Oct. 01, 2020 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA) today announced that it has signed two Resource Adequacy Agreements, each for 50% of its 5 MW / 20 MWh Tierra Buena battery energy storage project currently under development in Sutter County, northern California. Two Community Choice Aggregators (“CCAs”), Redwood Coast Energy Authority (“RCEA”) and Valley Clean Energy (“VCE”), each signed an agreement for 2.5 MW of resource adequacy from Ormat’s Tierra Buena energy storage project. Under the 10-year agreements, the project is expected to begin commercial operation no later than June 2022.

These are the first energy storage deals for the two CCAs, sought in order to comply with a multi-year statewide mandate to add 3.3 GW of incremental resource adequacy to the California grid by 2023. This project marks another expansion of Ormat’s energy storage footprint in California, its current primary growth market for energy storage. It is in addition to Ormat’s acquisition of the operating Pomona energy storage facility (20 MW/ 80 MWh) and the ongoing construction of the Vallecito energy storage project (10 MW / 40 MWh), also in California.

“Ormat is committed to being an active participant in California’s effort to achieve its goal of 100% carbon-free electricity by 2045,” commented Doron Blachar, Ormat’s Chief Executive Officer. “Increasingly, energy storage plays a key role in making this transition reliable and cost-effective, and Ormat continues to expand its presence and capabilities in this area. In particular, Ormat is focused on serving CCAs around the state, bringing innovative solutions focused on renewable and sustainable energy resources to meet current and projected demand, responsibly. We are pleased to leverage our proven capabilities and provide grid operators with the expertise to enhance grid performance, stability and responsiveness, while delivering capacity at the right time, the right place, and the right price.”

“Valley Clean Energy is proud to announce our partnership with sister agency Redwood Coast Energy Authority, and battery storage experts Ormat, on this initiative,” said Don Saylor, VCE’s Chair of the Board. “Battery storage is critical to maintaining grid stability, especially within the context of increasing wildfires and power shutoffs in California. VCE’s customers will continue to benefit from our commitment to climate resilience, community benefits and partnering on local projects like Tierra Buena.”