Ormat Launches 80MW California Storage Facility Under 15-Year Contract
Event summary
- Ormat's 80MW/320MWh Shirk energy storage facility in Visalia, California began commercial operations on March 12, 2026.
- The project is backed by a 15-year Resource Adequacy Purchase and Sale Agreement with the City of Riverside.
- Shirk qualifies for a 40% Investment Tax Credit, with monetization through a hybrid tax equity partnership with Morgan Stanley Renewables.
- Ormat's total energy storage portfolio now stands at 495MW, with 1,340MW in geothermal and solar generation.
The big picture
Ormat's Shirk facility launch underscores the growing importance of large-scale energy storage in California's grid reliability strategy. The project's 15-year contract structure and tax credit monetization highlight how developers are balancing financial returns with clean energy mandates. This follows broader industry trends of vertically integrated renewable players expanding into storage to capture value from grid flexibility needs.
What we're watching
- Contract Execution
- How Ormat will leverage long-term contracted revenues to stabilize its energy storage segment's profitability.
- Tax Credit Utilization
- Whether the hybrid tax equity partnership model with Morgan Stanley can be replicated for future projects.
- Portfolio Diversification
- The pace at which Ormat expands its energy storage portfolio relative to its geothermal and solar assets.
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