Geothermal and battery storage firm Ormat Technologies’ 80MW/320MWh Shirk battery energy storage system (BESS) in Visalia, California, US, has reached commercial operation.
At the time, Riverside’s first RA contract required Ormat to bring the project into operation by the guaranteed commercial operation date (COD) of 1 March 2026, although the company expected to do so earlier, by the end of 2025. Ormat announced COD on 12 March.
According to Ormat, the Shirk project is eligible for a 40% investment tax credit (ITC). The Company intends to monetise these tax benefits through a hybrid tax equity partnership with Morgan Stanley Renewables, announced in May 2025, which aids in funding and optimising the company’s expanding energy storage portfolio.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
Ormat noted when it signed the tax equity partnership that the transaction would cover the 60MW/120MWh Lower Rio project, located in Texas, and the 35MW/140MWh storage, 42MW solar PV Arrowleaf project, located in California.
Ormat has tolling agreements for Lower Rio and its 660MW/120MWh Bird Dog BESS, the projects were Ormat’s first tolling deals in the Electric Reliability Council of Texas (ERCOT) market, and Ormat claims the deals allowed it to proceed with construction of the 100MW/200MWh Louisa BESS project.
In October 2024, Ormat put its 80MW/320MWh Bottleneck project into operation in California’s Central Valley. The company announced it would also leverage the ITC for that project.
In 2020, Ormat diversified beyond geothermal energy by establishing its energy storage division. The company announced its goal to become a leading player in the US storage sector, aiming for a growth of approximately 468% to 502% in megawatts by 2025.
Recently, the company co-led a US$97 million Series B funding round with investment firm Carbon Direct Capital for geothermal company Sage Geosystems, to advance its first commercial geothermal power generation facility.
The Energy Storage Summit USA 2026 will be held from 24-25 March 2026, in Dallas, TX. It features keynote speeches and panel discussions on topics like FEOC challenges, power demand forecasting, and managing the BESS supply chain. ESN Premium subscribers can get an exclusive discount on ticket prices. For complete information, visit the Energy Storage Summit USA website.
