Ormat Technologies begins commercial operations at 80MW/320MWh Shirk battery energy storage system in California

Type: Development · Technology: Storage · Country: United States · Capacity: 80 MW · Announced: 2026-03-12

Ormat Technologies announced the commercial operation of its 80MW/320MWh Shirk battery energy storage system (BESS) in Visalia, California, on March 12, 2026. This project fulfills a 15-year resource adequacy (RA) purchase and sale agreement signed in July 2024 with the City of Riverside, California. The Shirk BESS project was required to be operational by March 1, 2026, as per Riverside's first RA contract. The project is eligible for a 40% investment tax credit, which Ormat intends to monetize through a hybrid tax equity partnership with Morgan Stanley Renewables, announced in May 2025.

Analysis

Ormat Technologies has brought its 80MW/320MWh Shirk battery energy storage system in Visalia, California, to commercial operation on March 12, 2026, fulfilling a 15-year resource adequacy purchase and sale agreement with the City of Riverside, California. This project's commercial launch, while 11 days past the March 1, 2026 deadline stipulated by Riverside's initial RA contract, secures critical resource adequacy for the municipality over the long term. Ormat structured the deal to capture significant financial benefits, leveraging a 40% investment tax credit which it plans to monetize through a hybrid tax equity partnership with Morgan Stanley Renewables, a collaboration initially announced in May 2025. The 15-year RA contract, signed in July 2024, provides predictable revenue streams for Ormat, underpinning the project's financial viability. This 80MW/320MWh BESS project represents a strategic diversification for Ormat Technologies, a company primarily known as a leading geothermal developer, owner, and operator. By delivering the Shirk BESS, Ormat expands its renewable energy solutions portfolio beyond its core geothermal power plants and equipment provision, demonstrating its capability in the storage sector. The City of Riverside, California, as the offtaker, secures a crucial 15-year resource adequacy contract, addressing its energy needs and meeting its first RA contractual obligations. This long-term agreement provides the City of Riverside with reliable capacity, while Ormat benefits from a stable revenue stream and the successful deployment of a significant battery storage asset in the US market.

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