Ormat Technologies stock: Israel storage deals target 2028 start

Ormat Technologies announced on February 13, 2025, that it had won an Israeli Electricity Authority tender for two energy storage facilities. The company said the agreements would expand its storage portfolio beyond its geothermal and recovered-energy base.

The Ormat Technologies press release said the two tolling agreements cover facilities with a combined planned capacity of 300 megawatts and 1,200 megawatt-hours. Each agreement runs for 15 years, giving the projects a contracted commercial framework rather than relying solely on merchant-market prices.

Partnership sets development framework

Ormat is developing the facilities with Allied Infrastructure Ltd., an Israeli infrastructure company. Ownership is split equally between the partners, marking Ormat's first major entry into Israel's utility-scale energy storage market. The partnership also intends to pursue additional storage facilities in the country.

The agreements are not yet equivalent to operating assets. At the time of the announcement, the partners were still working to secure interconnection for the projects and the land-use permits needed before construction could begin. Ormat said commercial operation was expected in 2028, placing the earnings contribution further out than the next reporting cycle.

The tolling structure is designed to support more stable portfolio profitability and margin performance, according to Ormat Chief Executive Doron Blachar. The contracts also include an option to terminate the initial arrangement and move into the merchant market, giving the partners a different route if market conditions make that approach more attractive.

For investors, the agreements add a longer-dated storage growth avenue to Ormat's established geothermal generation business. The near-term investment case still depends on permitting, grid interconnection, construction progress and the eventual operating performance of the facilities. The contracts therefore broaden the strategic opportunity without immediately changing current operating earnings.

The real-time quote of Ormat Technologies stock was 87.98 euros on Lang & Schwarz at 11:41 CET on Wednesday, November 4, 2026.

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