Ormat Technologies has begun commercial operations for two new battery energy storage facilities in separate parts of the United States.
The two BESS facilities, in Texas and New Jersey, are part of four projects with a total capacity of 62MW/62MWh planned for the first half of 2023, with a cumulative capacity of 43MW/43MWh, the company reported.
Doron Blachar, Ormat Technologies' CEO has stated that Ormat has met all electricity segment growth targets and completed the construction of four power plants, which includes the 25-MW North Valley geothermal power plant, the 6 MW Brady Solar facility, the recovery of Heber 1, and the 6-MW upgrade to the Dixie Valley power plant, since the start of 2023.
Ormat aims to expand its renewable power portfolio and demonstrate a total increase of 99 MW in all segments to reach 1,257 MW.
Blachar added that the company is planning to introduce two additional assets in 2023 and achieve between 500 to 530 MW and over 1 GW-hour in total capacity by the end of 2025. These will further support top-line and EBITDA expansion.
The completed projects include:
• The Upton project, a 23MW/23MWh Battery Energy Storage System located in Texas, will provide energy and ancillary services to the Electricity Reliability Council of Texas and support the electric grid in times of scarcity.
• The Andover BESS project, a 20MW/20MWh located in New Jersey, will provide ancillary services to PJM.
• The previously announced commercial operation of the 12MW/12MWh Bowling Green and 7MW/7MWh Howell BESS projects, located in Ohio and New Jersey, respectively, that provide ancillary services to PJM.
“Ormat will now be able to maximize the economic advantages of these storage assets as they become eligible for Investment Tax Credits (ITC) for the first time,” said Doron Blachar, CEO of Ormat Technologies. “This eligibility allows us to claim approximately 30 percent of the asset value in tax credits, reducing our capital needs and enhancing earnings.”
As of May, the Electric Reliability Council of Texas (ERCOT), which oversees the Texas grid, reported some 96 GW of battery storage capacity requested for interconnection into the system. Energy storage requests ranked second behind only 129 GW in solar in the interconnection queue through this decade, according to ERCOT.