Ormat Technologies Inc., a leader in geothermal and renewable energy, announced today that it has won a tender from the Israeli Electricity Authority. The company has been awarded two 15-year tolling agreements for Energy Storage facilities, with a combined capacity of around 300 MW/1200 MWh.
These projects are being developed in collaboration with Allied Infrastructure LTD, a top infrastructure company in Israel. Ormat and Allied will equally share ownership of the facilities. This marks their first major venture into the Israeli utility-scale energy storage market, and they plan to expand this initiative further.
Doron Blachar, Chief Executive Officer of Ormat Technologies, stated “We are delighted to announce the award of these two tolling agreements, marking another key strategic milestone for our growing Energy Storage business. 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 further added, “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.”T
he companies are currently in the process of securing the necessary interconnection and land permits to begin construction. They expect the projects to begin commercial operations in 2028. The tolling agreement also includes an option to terminate the initial contract and shift to the merchant market.
