From Geothermal to Grid Systems: Ormat’s Energy Storage Strategy
As energy storage becomes foundational to modern grids, the defining question shifts from why storage matters to how to integrate it effectively. Our power systems have evolved into coordinated networks of generation, transmission, and flexibility assets, such as energy storage, and companies with asset operating experience are uniquely positioned to lead.
For Ormat, energy storage is not a departure from its geothermal foundation. It is a logical extension of its long-standing model built on ownership, operational expertise, and system-level thinking.
An Infrastructure Operating Model for Energy Storage
60 years ago, Ormat’s geothermal portfolio established its position as an infrastructure operator. Geothermal development requires an interconnection strategy, land control, engineering expertise, and operational skill. Successful projects are designed for decades of reliable performance, not short cycles of deployment.
This model also informs Ormat’s approach to energy storage. Storage assets are evaluated, developed and operated within the context of a broad grid system rather than as isolated projects. This is essential because it provides deep experience of the whole cycle and insight into how an asset operates over time matters as much as how quickly it can be built. Solar-plus-storage projects, such as Arrowleaf which was completed in Fall 2025, reflect this integrated approach. Additional solar-plus-storage projects are being submitted for interconnection studies in Georgia, California, Colorado, New Mexico, and Oregon.
Leveraging Transmission and Land Position
A structural advantage in Ormat’s energy storage strategy is its ability to leverage its infrastructure readiness, particularly interconnection experience and established land position associated with operational assets. Where those opportunities present themselves, it can streamline development and support integrated deployment strategies, including co-location where appropriate.
Solar-plus-storage projects, such as Arrowleaf completed in Fall 2025, reflect this integrated approach. Additional solar-plus-storage projects are being submitted for interconnection studies in Georgia, California, Colorado, New Mexico, and Oregon.
Rather than pursuing opportunistic deployment, Ormat aligns storage development with infrastructure readiness and long-term operational fit, thereby prioritizing assets that can be interconnected, operated, and maintained meeting rigorous standards.
Geographic Diversification Across ISOs
Ormat’s energy storage strategy also emphasizes diversification across independent system operators (ISOs), including CAISO, ERCOT, and PJM. Targeting regions with projected load growth allows Ormat to balance risk while aligning with evolving grid demand. In such a scenario, storage deployment becomes part of a broader footprint that can quickly adapt to regional grid dynamics.
Supporting Peak Load and Grid Resilience with Energy Storage
Energy storage plays a critical role in managing peak load and supporting grid reliability during volatile conditions. Batteries can respond rapidly to changing system needs, providing flexibility when the system is tight.
Ormat’s approach integrates storage with generation assets to support system performance under a range of operating conditions. By coordinating generation and storage,
Ormat contributes to grid flexibility while maintaining
reliability and operational accountability.
Ormat Addresses Emerging Power Demand
As new forms of demand for geothermal and other renewables emerge, including from data centers in transmission-constrained regions, infrastructure solutions require coordination between generation and storage. In areas where transmission lines are limited or would take years to construct, co-located generation and storage assets can support localized load.
Ormat evaluates these opportunities within the context of long-term infrastructure planning, ensuring that development aligns with operational and system-level requirements.
Ormat: From Projects to Grid Platforms
Energy storage at Ormat is not treated as diversification. It is integrated into a broader platform that combines geothermal energy generation, infrastructure experience, interconnection strategy, land position, and extensive asset operation experience.
As grids transition from collections of assets to integrated systems, infrastructure operators with decades of experience managing assets are well positioned to lead. Ormat’s energy storage strategy reflects this evolution, from geothermal foundations to integrated grid systems designed for long-term performance.