Ormat Technologies, Inc. (NYSE:ORA) announced today its subsidiary has signed an agreement with a subsidiary of Alevo Group SA, a leading provider of energy storage systems, to jointly build, own and operate the Rabbit Hill Energy Storage Project, located in Georgetown, Texas.
Ormat will own and fund the majority of the Rabbit Hill energy storage project and under the terms of the agreements, will provide engineering, construction services and balance of plant equipment. Alevo will provide its innovative GridBank inorganic lithium ion energy storage system in conjunction with the power conversion systems. In addition, Alevo will provide ongoing management and operations and maintenance services for the life of the project.
The 10 MW project will consist of three GridBank™ enclosures and will provide fast responding regulation services (FRRS) as an open market participant in the Electric Reliability Council of Texas (ERCOT), an independent system operator that manages the flow of electric power to Texas customers. The project represents an important milestone in the evolution of the Texas market, which has more wind installed than any other state and has a rapidly expanding base of installed solar energy projects. Integrating renewable energy into the grid will increasingly require the flexibility and capabilities that fast, accurate storage resources provide in order to balance the grid at lowest cost.
“Entering the energy storage market is a key component of our long term growth plan, helping us to further diversify revenues and advancing our goals of transitioning from a geothermal company to a recognized leader in the renewable energy industry,” commented Isaac Angel, Chief Executive Officer. “While we do not expect our initial expansion into this area to generate material revenues for Ormat, we anticipate that collaborating with Alevo, with its innovative technology and global presence will allow us to make significant progress towards our expansion in this field. We see the energy storage market as a meaningful growth driver for Ormat and for the renewable energy industry and we continue to work on similar and other initiatives to support value for our shareholders.”
“We are pleased to be partnering with the innovative and forward looking management of Ormat and look forward to building a long lasting relationship as we move towards a more efficient energy market,” said Christopher Christiansen, President, Alevo Inc. “They have long been a leader in the renewable energy sector, and we are excited they have chosen Alevo for this exciting opportunity.”