Tax Incentives Boost Energy Storage Expansion: Ormat Signs Multi-Million Dollar Tax Equity Partnership

Reno, USA – U.S. geothermal and energy storage specialist Ormat Technologies has entered into a hybrid tax credit partnership worth USD 62 million with Morgan Stanley Renewables Inc.

The agreement covers two energy storage projects: Lower Rio, with a capacity of 60 MW and 120 MWh of storage, and the Arrowleaf project, which combines a 4-hour storage system with a capacity of 35 MW and 140 MWh, along with solar projects totaling 42 MW.

Both projects are expected to be commercially operational by the end of 2025. CEO Doron Blachar emphasized that this partnership enhances the economic viability of the projects and contributes to monetizing USD 160 million in tax benefits this year. Ormat plans to utilize the Investment Tax Credits (ITCs) through 2026 to strengthen its development pipeline and meet the growing demand for energy storage solutions.

In today’s trading, Ormat’s stock is up 1.3 percent at EUR 63.72 (1:05 PM, May 28, 2025, Stuttgart Stock Exchange). Compared to its price at the beginning of the year, the stock is down slightly by 1 percent.

Source: IWR Online, 28 May 2025