Ormat Technologies signs a 15-year resource capacity sale and purchase agreement with the City of Riverside.
The 80 MW, 320 MWh Shirk project is located in Visalia, California.
This agreement marks the first collaboration between Ormat and Riverside for energy storage.
A strategic step for Ormat
The Shirk project benefits from a 40% investment tax credit, reinforcing Ormat’s commitment to increasing its presence in the Californian energy storage market.
The commercial commissioning date is set for March 1, 2026, with completion possible by the end of 2025.
This agreement enables Ormat to consolidate its growth strategy in the energy storage sector.
Riverside has signed its first long-term resource capacity agreement, marking an important step for the city in managing its energy needs.
This partnership demonstrates Ormat’s ability to meet the demands of regulated energy markets such as California’s.
Project outlook and impact
Doron Blachar, CEO of Ormat Technologies, points out that this agreement is in line with the company’s strategy of targeting key markets such as California.
The Shirk project enables Ormat to increase its storage capacity and diversify its revenue sources in the energy sector.
Dr. Scott Lesch, Deputy Director of Energy Resources at Riverside Public Utilities, says the Shirk BESS project will help Riverside meet its capacity needs in a cost-effective manner.
He adds that the project will contribute to energy storage capacity in the CAISO regulatory area, enhancing the region’s energy stability.
Benefits for California
The Shirk project represents a strategic investment for California, supporting the state’s renewable energy and grid stability goals.
By increasing energy storage capacity, this project contributes to reducing dependence on fossil fuels and improving grid resilience.
In addition, the partnership between Ormat and Riverside demonstrates how effective public-private collaborations can be in achieving common goals in the energy sector.
The Shirk project could serve as a model for other similar initiatives across the state.
The contract between Ormat Technologies and the City of Riverside for the Shirk project illustrates a significant step forward in energy storage in California.
This partnership strengthens Ormat’s storage portfolio and supports California’s energy goals.
This type of collaboration could become a benchmark for future initiatives to accelerate the transition to renewable energy sources and enhance grid stability.
