Ormat Technologies, Inc. (NYSE: ORA), a leading renewable energy company, announced the signing of a 15-year Energy Storage Service Agreement (ESSA) with San Diego Community Power (SDCP), California’s second largest community choice aggregator, for the 20MW/40MWh Pomona 2 Battery Energy Storage System (BESS) located in Los Angeles County, California.
The Pomona 2 project, operational since July 2023, represents Ormat's commitment to growing its energy storage segment through the delivery of innovative solutions and storage services. This agreement marks the second tolling agreement in the Company’s expanding portfolio, following the 2022 Bottleneck contract. These agreements contribute to the growth of a stable, profitable and predictable revenue stream for Ormat’s energy storage segment, with over 40% of the segment’s revenue expected to be contracted starting the second half of 2024.
Doron Blachar, CEO of Ormat Technologies said, “This long-term tolling agreement further expands Ormat’s energy storage portfolio and supports SDCP’s commitment to bringing clean, reliable energy to its nearly one million customers. The Pomona 2 project will help to balance our merchant portfolio and support more stable and profitable revenues for the storage segment. We continue to view energy storage as a unique, multi-year growth sector that will play a vital role in global decarbonization as intermittent renewable energy sources continue to be deployed as part of the ongoing energy transition. Ormat is committed to growing its energy storage portfolio and capabilities by utilizing our market position and expertise, and we are proud to expand our presence in California with this second agreement signed with SDCP. We view California as a key target market for renewable energy development, and are proud to be part of the solution in addressing the state’s net-zero goals.”
