Ormat Technologies Launches Major 80MW Energy Storage Facility in California

Ormat Technologies Inc., has officially launched commercial operations at its largest energy storage facility, the Bottleneck project. This 80MW/320MWh Battery Energy Storage System (BESS), situated in California’s Central Valley, will deliver energy, capacity, and ancillary services to San Diego Gas & Electric (SDG&E) under a 15-year Power Purchase Agreement established in 2022.

The Bottleneck project is poised to qualify for a 40% Investment Tax Credit, which the company aims to capitalize on by year’s end. This initiative underscores Ormat’s ongoing commitment to expanding its Energy Storage segment in the vital California energy market. Doron Blachar, CEO of Ormat Technologies, stated, “We are happy to announce the commencement of operations at Ormat’s Bottleneck Battery Storage Facility. This milestone reflects our dedication to expanding our energy storage portfolio in strategic U.S. markets while improving our profitability. With the addition of Bottleneck, we now operate 270MW/638MWh of storage projects and we have six additional projects currently under construction with a total capacity of 355MW/920MWh, demonstrating our strong development capabilities and commitment to achieving our 950MW-1050MW/2.5GWh-2.9GWh 2028 portfolio capacity target.”

Blachar continued, “The addition of the Bottleneck project, supported by a 15-year PPA, brings long-term contracted revenues with improved margins to our Storage segment. We look forward to continuing to support the state of California with our premium renewable power generation and energy storage solutions as the state continues to advance towards its clean energy goals.”