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. In addition, the acquisition of the Hoku hybrid solar-plus-storage facility further supports this strategy. Additional solar-plus-storage projects are being advanced across key U.S. markets as part of Ormat’s growing storage pipeline.
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.
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 includes standalone storage assets as well as integrated solutions, supporting grid performance under a range of operating conditions.
Ormat contributes to grid flexibility while maintaining
reliability and operational accountability.
Ormat: From Projects to Grid Platforms
Energy storage at Ormat is not viewed as a standalone diversification effort. It is part of a broader platform that leverages the Company’s experience in geothermal generation, infrastructure development, interconnection, land position, and long-term asset operation.
As grids transition from collections of assets to integrated systems, infrastructure operators with decades of experience managing assets are well positioned to play a leading role. Ormat’s energy storage strategy reflects this evolution, from geothermal foundations to integrated grid systems designed for long-term performance.