Geothermal Business Model

Flexible Business Models

Ormat operates using several business models; all are designed to accommodate a wide range of customer preferences, while maintaining maximum flexibility and efficiency. When we work with our customers, we seek first to understand their perspectives and to develop approaches that fit the unique parameters of their geothermal resource, the economics of developing it and the market dynamics the resulting electricity must navigate.

Here are several business models Ormat applies to client partnerships in the geothermal industry:

Independent Power Producers (IPP)

Ormat often operates as an independent power producer (IPP) or non-utility generator. Under this model, we develop and own geothermal power facilities to generate electric power for sale to our customers, usually local utilities, under long term Power Purchase Agreements (PPA).

Engineering, Procurement, Construction (EPC)

Ormat has advanced a number of geothermal facilities using the EPC model, whereby we provide engineering design, procure all necessary equipment, supplies, labor, contractors and construct the facility according to agreed-upon scope, schedule and budget. We also have the capability to provide geologic support in reservoir assessment and development.

Joint Venture (JV) and Partnerships

Ormat believes in the power of teamwork, especially when it comes to the prospect of advancing technological innovation and/or reducing potential project risks. We regularly look for joint ventures and partnerships across all phases of the geothermal energy lifecycle – from exploration through ongoing facility operation.

Supply

Some geothermal developers have expertise in project management and construction capability resident within their organizations. Ormat is pleased to provide the customer with the supply of the Ormat designed power plant and provide support and technical assistance.

Trouble-Shooting, Facility Upgrades, Commissioning Projects and other services

Thanks to Ormat’s extensive operational experience, our company is often called on by clients who may require a specific one-off service or assistance with a specific process or program. We’ve been called on to address geothermal facility performance issues, to conduct control system upgrades, to assist with facility commissioning and startups, and to retrofit and refurbish units, for example. We stand behind the equipment and facilities we build and are always ready to work with clients to help extend the operating life cycles of their geothermal assets.