Ormat continues to increase its backlog, to carry out projects and supply equipment to geothermal stations

Ormat Technologies continues to increase its backlog of orders, to carry out projects and supply equipment to geothermal stations. Ormat Technologies, managed by Doron Balsher, has won a contract to supply products for the Canadian company Polaris. It is engaged in the initiation, construction, development and acquisition of renewable energy projects in Latin America.
Ormat Technologies will supply heat converters for the San Jacinto project that the Canadian company is setting up on the Telica site in Nicaragua, at a cost of $ 25 million. The financial scope of the order was not disclosed, but it is estimated that it is $ 10 million.
Ormat expects the design, production and delivery of the heat converters it will supply to the Canadian company to be completed within 11 months. The contract with Canadian Polaris will increase the company's backlog of products in the product segment - that is, turbine manufacturing and the provision of design, procurement and construction services for other geothermal companies - which totaled $ 59 million in early August 2021.
Ormat also signed a ten-year contract with California-based Pacific Gas & Electric. The contract between Ormat and PG&E guarantees Ormat a regular monthly payment for providing available storage capacity for the benefit of the IEC, and does not prevent it from operating in the electricity network.
Ormat will also receive a separate payment if requested by PG&E to supply electricity to the grid from the storage facility. The amount of the payment in contracts of this type (Resource Adequacy) varies and depends mainly on the location of the substation of the electricity network to which the storage facility is connected, and the load that the substation is dealing with.
Ormat will provide PG&E with storage services at the Pomona 2 facility, which is located adjacent to the Pomona 1 facility, which provided 20 MW / 80MWh. It was acquired by Ormat in July 2020 for $ 43 million. Ormat will provide the California-based company with a storage capacity of 10 megawatts for two hours, which is 50% of the capacity of the Pomona 2 storage facility and is expected to go into commercial operation in October 2022.
Belsher noted that the current contract with PG&E was signed following the California Electricity Authority (CPUC) directives for the three largest California power companies to acquire storage capacity of at least 1000 megawatts by the summer of 2022. This is a lesson from the extensive power outages California experienced in August 2020. 40 MWh will join Ormat's storage facilities with a combined capacity of 83 MW / 176 MWh, and is part of Ormat's plan to build additional 200-300 megawatts of storage facilities by the end of 2023.