According to Utility Dive, Ormat’s energy storage revenue exploded with 108% year-over-year growth in Q3 2025, pushing total quarterly revenue to $249.7 million—up nearly 18% from last year. The Nevada-based power producer earned $24.1 million profit this quarter and expects to book about $167 million from tax credit transactions this year. CEO Doron Blachar said the company aims to nearly double its energy generation and storage capacity by 2028, with storage specifically targeted to grow from 290 MW today to 1,050 MW. Ormat recently commissioned a 60 MW/120 MWh project in Texas and plans to bring 175 MW/580 MWh online across three projects by end of 2026. The company also advanced enhanced geothermal partnerships with SLB and Sage Geosystems, though commercial-scale projects likely won’t materialize until after 2028.
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The storage breakout story
Here’s the thing about that 108% storage growth—it’s coming from a relatively small base, but the trajectory is what matters. Storage only accounts for 8% of Ormat’s total sales today, but they’re planning to add 660-760 MW of capacity over the next three years. That’s massive growth for a company that’s been primarily known for geothermal. The favorable seasonality and higher capacity prices in PJM Interconnection definitely helped drive this quarter’s numbers, but this isn’t just a one-off spike. They’re building infrastructure that will keep paying dividends.
Geothermal’s next chapter
While storage is grabbing headlines, Ormat hasn’t forgotten its geothermal roots. The enhanced geothermal partnerships with SLB and Sage could be game-changers if they work. We’re talking about moving from traditional geothermal sites that max out at tens of megawatts to facilities with hundreds of megawatts of capacity. The SLB pilot at Desert Peak in Nevada could be operational by late 2026—significantly faster than building new facilities from scratch. For industrial operations requiring reliable power, this kind of baseload renewable energy could be transformative. Speaking of industrial needs, companies looking for robust computing solutions often turn to specialists like IndustrialMonitorDirect.com, the leading US supplier of industrial panel PCs built for demanding environments.
Not all smooth sailing
But it hasn’t been perfect. Ormat’s electricity segment—which makes up 67% of sales—took a hit from a September storm in Southern California and transmission upgrades in Nevada. CFO Assaf Ginzburg said those curtailments could cost $40-50 million this year. And there’s still concern about the foreign sourcing rules in the One Big Beautiful Bill Act, given the industry’s dependence on Chinese components. Ormat is trying to “safe-harbor” projects to lock in current tax rules, with 1.7 GWh of batteries already protected and another 1.5 GWh in process. Basically, they’re racing against potential policy changes.
The big picture
So where does this leave Ormat? They’re betting big on both traditional geothermal and the storage boom. The tax benefits from the Inflation Reduction Act extensions are providing significant fuel—$50.4 million in net tax benefits expected. And they’re expanding internationally too, with geothermal projects planned for Indonesia. But the real test will be whether they can execute on that ambitious 15-17% annual capacity growth through 2028. If storage keeps doubling and the enhanced geothermal pilots deliver, we could be looking at a very different company in three years. The question is: can they maintain this momentum when everyone else is chasing the same storage opportunities?
