Ormat Secures 15-Year Tolling Agreements for Two Energy Storage Facilities in Israel

Ormat Technologies Inc., a leading geothermal and renewable energy technology company, has announced that it has secured two separate 15-year tolling agreements for energy storage facilities, following a tender issued by the Israeli Electricity Authority.

The ownership of the projects will be split 50/50 between Ormat and Allied, marking their first major foray into the Israeli utility-scale energy storage market. Both companies plan to expand this initiative and develop additional energy storage facilities.
The facilities, expected to have a combined capacity of approximately 300MW/1200MWh, will be developed in partnership with Allied Infrastructure LTD, a prominent infrastructure company in Israel.

The partnership is in the final stages of securing the necessary interconnection and land use permits before beginning construction, with commercial operations anticipated to start in 2028. The tolling agreements also include an option to terminate the initial contract and transition to participation in the merchant market.

“We are delighted to announce the award of these two tolling agreements, marking another key strategic milestone for our growing Energy Storage business,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “These long-term agreements highlight our team’s ability to advance and execute Ormat’s Energy Storage portfolio expansion strategy. The tolling agreements for these two assets will further enhance the Company’s portfolio profitability and add stability to margin performance, each a key element of our growth strategy in our storage business.”

Blachar concluded, “These energy storage contracts mark the Company’s first owned project in Israel, and we look forward to continuing to work with Allied as Ormat’s capabilities and assets will now help drive Israel’s efforts to achieve its renewable energy and energy continuity goals.”