Ormat began commercial operations at its 80‑MW/320‑MWh battery energy storage system in Visalia, California, under a 15‑year Resource Adequacy Purchase and Sale Agreement with the City of Riverside. The facility qualifies for a 40 % Investment Tax Credit, which Ormat will monetize through a hybrid tax‑equity partnership with Morgan Stanley Renewables.
The launch expands Ormat’s U.S. storage portfolio and delivers long‑term, contracted revenue streams that align with the company’s strategy to build a diversified pipeline of contracted storage assets. The 15‑year agreement provides predictable cash flow and positions Ormat to capture California’s growing demand for grid‑reliability services.
Management highlighted the milestone, saying, “We are pleased to announce the commencement of operations at the Shirk Energy Storage Facility, another important milestone in the continued growth of our energy storage platform. This project further demonstrates our ability to develop and deliver large‑scale storage assets that provide critical reliability services to the grid while supporting California’s clean energy transition.” He added, “With long‑term contracted revenues and the ability to monetize the project’s tax benefits through our previously announced hybrid tax equity partnership, Shirk strengthens the profitability and long‑term visibility of our energy storage segment while advancing our strategy of building a diversified portfolio of contracted storage assets.”
The facility’s 80‑MW capacity and 320‑MWh energy rating enable it to provide rapid response and sustained output, supporting peak‑load management and renewable integration. The 40 % ITC, combined with the tax‑equity partnership, improves the project’s economics and enhances the return on investment for Ormat’s shareholders.
The Shirk project is part of Ormat’s broader expansion, which saw the company double its energy storage revenue year‑over‑year in 2025 and project continued growth in 2026. The new asset reinforces Ormat’s trajectory toward higher margins and a stronger market presence in the U.S. grid‑services market.
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