Ormat Inks 15-Year Service Pact for Pomona 2 Energy Storage Facility with San Diego Community Power

Ormat Technologies, Inc.has executed a 15-year Energy Storage Service Agreement (ESSA) with San Diego Community Power (SDCP) for a 20MW/40MWh project named Pomona 2 Battery Energy Storage System (BESS). The project is located in Los Angeles County, California. SDCP is California’s second largest community choice aggregator. The Pomona 2 project has been operational since July 2023. It showcases Ormat’s dedication towards expanding its energy storage segment by delivering innovative solutions and storage services.

This marks Ormat’s second tolling agreement, complementing the 2022 Bottleneck contract. These agreements enhance a stable, profitable revenue stream for Ormat’s energy storage segment, with over 40% of revenue expected to be contracted from the second half of 2024.

Doron Blachar, CEO of Ormat Technologies said, “This long-term tolling agreement further expands Ormat’s energy storage portfolio and supports SDCP’s commitment to bringing clean, reliable energy to its nearly one million customers. The Pomona 2 project will help to balance our merchant portfolio and support more stable and profitable revenues for the storage segment. We continue to view energy storage as a unique, multi-year growth sector that will play a vital role in global decarbonization as intermittent renewable energy sources continue to be deployed as part of the ongoing energy transition. Ormat is committed to growing its energy storage portfolio and capabilities by utilizing our market position and expertise, and we are proud to expand our presence in California with this second agreement signed with SDCP. We view California as a key target market for renewable energy development, and are proud to be part of the solution in addressing the state’s net-zero goals.”