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Ormat Technologies (ORA) Inks Deals for Two Storage Facilities
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Ormat Technologies, Inc. (ORA - Free Report) recently revealed that it has signed two seven-year tolling agreements involving Texas-based energy storage facilities with Equilibrium Energy. Both the projects, Lower Rio and Bird Dog, come with a storage capacity of 60 megawatts (MW)/120 megawatt-hours (MWh) each.
While it is projected that the Bird Dog facility will be operational in the fourth quarter of 2025, the Lower Rio project is slated to be online in the second quarter of next year.
Benefits of the Agreement
Factors like economic and population growth in Texas in recent times, along with fast-rising demand for power from data centers, have significantly boosted energy demand in this state. This has set the stage for notable growth of energy storage facilities, which has been encouraging energy storage service providers like Ormat Technologies to enhance their footprint in this state. The latest tolling agreement the company has signed is a bright example of that.
These two tolling contracts secure fixed revenues for the energy and associated services provided by the facilities, thereby securing a steady revenue stream for Ormat Technologies.
Ormat’s Prospects in US Energy Storage
As the globe moves toward a greener future, the energy storage sector is expanding dramatically not only in Texas but also throughout the United States as industries across the board are strengthening their grid and aiming at sustainable energy usage. To this end, the Global Market Insights firm expects the U.S. energy storage market to witness a CAGR of 15.5% over the 2024-2032 period.
This estimate undoubtedly paves the way for energy storage solution providers like Ormat Technologies to capitalize on the expanding energy storage demand in the United States.
Ormat is currently in the process of constructing seven additional energy storage projects with a total capacity of 355 MW/1,060 MWh in California, Texas and New Jersey. ORA has an approximate 3.6 gigawatt (GW)/13.1 gigawatt-hour (GWh) pipeline of potential projects in different stages of development across the United States that will enable it to duly achieve its target of reaching an energy storage portfolio of 700-800 MW/1,900-2,300 MWh by the end of 2026.
Peers to Benefit
Apart from ORA, prominent alternative energy players like Ameresco (AMRC - Free Report) , Fluence Energy, Inc. (FLNC - Free Report) and Energy Vault Holdings, Inc. (NRGV - Free Report) are expanding their footprint to reap the benefits of the expanding U.S. energy storage market.
In July 2024, Ameresco declared that it has completed the construction of several Battery Energy Storage Systems in association with United Power in Colorado. The assets come with a storage capacity of 78.3 MW/313.34 MWh.
Ameresco’s long-term (three to five years) earnings growth rate is 25%. The Zacks Consensus Estimate for AMRC’s 2024 sales implies an improvement of 24.2% from the prior-year figure.
In July 2024, Fluence Energy with Excelsior Energy Capital signed a contract to build 2.2 GWh of battery storage projects in the United States, starting in 2025. Earlier in June 2024, the company was selected by a Swiss investment fund to deliver its third battery-based energy storage project in Finland, which has a storage capacity of 20 MW/20 MWh.
Fluence Energy has a long-term earnings growth rate of 56.2%. The Zacks Consensus Estimate for FLNC’s 2024 sales implies an improvement of 24.1% from the prior-year figure.
In April 2024, Energy Vault, along with NV Energy, announced the completion and beginning of the commercial operation of the Reid Gardner BESS in Moapa, NV. The facility comes with a storage capacity of 220MW/440MWh.
The Zacks Consensus Estimate for NRGV’s 2025 sales implies an improvement of 540.4% from the 2024 estimated figure. The Zacks Consensus Estimate for the company’s 2024 earnings per share is pegged at a loss of 60 cents, which indicates an improvement from its 2023 reported loss of 69 cents.
Price Movement
In the past three months, shares of Ormat Technologies have risen 1.7% against the industry’s decline of 0.6%.
Image: Bigstock
Ormat Technologies (ORA) Inks Deals for Two Storage Facilities
Ormat Technologies, Inc. (ORA - Free Report) recently revealed that it has signed two seven-year tolling agreements involving Texas-based energy storage facilities with Equilibrium Energy. Both the projects, Lower Rio and Bird Dog, come with a storage capacity of 60 megawatts (MW)/120 megawatt-hours (MWh) each.
While it is projected that the Bird Dog facility will be operational in the fourth quarter of 2025, the Lower Rio project is slated to be online in the second quarter of next year.
Benefits of the Agreement
Factors like economic and population growth in Texas in recent times, along with fast-rising demand for power from data centers, have significantly boosted energy demand in this state. This has set the stage for notable growth of energy storage facilities, which has been encouraging energy storage service providers like Ormat Technologies to enhance their footprint in this state. The latest tolling agreement the company has signed is a bright example of that.
These two tolling contracts secure fixed revenues for the energy and associated services provided by the facilities, thereby securing a steady revenue stream for Ormat Technologies.
Ormat’s Prospects in US Energy Storage
As the globe moves toward a greener future, the energy storage sector is expanding dramatically not only in Texas but also throughout the United States as industries across the board are strengthening their grid and aiming at sustainable energy usage. To this end, the Global Market Insights firm expects the U.S. energy storage market to witness a CAGR of 15.5% over the 2024-2032 period.
This estimate undoubtedly paves the way for energy storage solution providers like Ormat Technologies to capitalize on the expanding energy storage demand in the United States.
Ormat is currently in the process of constructing seven additional energy storage projects with a total capacity of 355 MW/1,060 MWh in California, Texas and New Jersey. ORA has an approximate 3.6 gigawatt (GW)/13.1 gigawatt-hour (GWh) pipeline of potential projects in different stages of development across the United States that will enable it to duly achieve its target of reaching an energy storage portfolio of 700-800 MW/1,900-2,300 MWh by the end of 2026.
Peers to Benefit
Apart from ORA, prominent alternative energy players like Ameresco (AMRC - Free Report) , Fluence Energy, Inc. (FLNC - Free Report) and Energy Vault Holdings, Inc. (NRGV - Free Report) are expanding their footprint to reap the benefits of the expanding U.S. energy storage market.
In July 2024, Ameresco declared that it has completed the construction of several Battery Energy Storage Systems in association with United Power in Colorado. The assets come with a storage capacity of 78.3 MW/313.34 MWh.
Ameresco’s long-term (three to five years) earnings growth rate is 25%. The Zacks Consensus Estimate for AMRC’s 2024 sales implies an improvement of 24.2% from the prior-year figure.
In July 2024, Fluence Energy with Excelsior Energy Capital signed a contract to build 2.2 GWh of battery storage projects in the United States, starting in 2025. Earlier in June 2024, the company was selected by a Swiss investment fund to deliver its third battery-based energy storage project in Finland, which has a storage capacity of 20 MW/20 MWh.
Fluence Energy has a long-term earnings growth rate of 56.2%. The Zacks Consensus Estimate for FLNC’s 2024 sales implies an improvement of 24.1% from the prior-year figure.
In April 2024, Energy Vault, along with NV Energy, announced the completion and beginning of the commercial operation of the Reid Gardner BESS in Moapa, NV. The facility comes with a storage capacity of 220MW/440MWh.
The Zacks Consensus Estimate for NRGV’s 2025 sales implies an improvement of 540.4% from the 2024 estimated figure. The Zacks Consensus Estimate for the company’s 2024 earnings per share is pegged at a loss of 60 cents, which indicates an improvement from its 2023 reported loss of 69 cents.
Price Movement
In the past three months, shares of Ormat Technologies have risen 1.7% against the industry’s decline of 0.6%.
Image Source: Zacks Investment Research
Zacks Rank
Ormat Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.