Ormat Technologies (NYSE:ORA) +1% in early trading Thursday after saying it signed two seven-year tolling agreements with Equilibrium Energy for the Lower Rio and Bird Dog energy storage facilities in Texas, marking its first tolling agreements in the ERCOT market.
The Lower Rio project is expected to come online in Q2 2025, and the Bird Dog facility is anticipated to be operational in Q4 2025; both projects are entitled to receive a 40% investment tax credit under the Inflation Reduction Act, the company said.
Ormat (ORA) said the two facilities, along with its existing merchant energy storage operation and the planned Louisa project, will provide essential energy storage services that will help further enhance grid reliability in Texas.
“By securing fixed, long-term revenues, we have de-risked approximately 50% of our strategically expanded Texas storage portfolio, aligning with our long-term plan to improve segment profitability and accelerate our growth,” Ormat (ORA) CEO Doron Blachar said.