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Ormat Technologies, Inc. has signed two seven-year tolling agreements with Equilibrium Energy for its Lower Rio (60MW/120MWh) and Bird Dog (60MW/120MWh) energy storage facilities in Texas. These agreements are Ormat’s first in the ERCOT market.
The Lower Rio project is scheduled to go online in Q2 2025, with the Bird Dog facility following in Q4 2025. Both projects will benefit from a 40% investment tax credit under the Inflation Reduction Act. The tolling agreements guarantee fixed revenues for energy and ancillary services, which has enabled Ormat to commence construction on the 100MW/200MWh Louisa project, slated for completion by late 2026. Together, the Lower Rio, Bird Dog, and Louisa projects, along with Ormat’s existing 33MW/33MWh merchant energy storage operation, will play a vital role in enhancing grid reliability across Texas.
“These groundbreaking tolling agreements represent an important strategic milestone for Ormat’s Energy Storage business,” added Doron Blachar, Chief Executive Officer of Ormat Technologies. “By securing fixed, long-term revenues, we have de-risked approximately 50% of our strategically expanded Texas storage portfolio, aligning with our long-term plan to improve segment profitability and accelerate our growth.” |
