Ormat (ORA) Starts the Operation of 2 Battery Storage Facilities
Ormat Technologies, Inc. ORA recently enhanced its battery storage capability by 43 megawatts (MW)/43 megawatt-hours (MWh) through the successful onset of operations at two new battery storage facilities in the United States. The two projects — Upton and Andover — are located in Texas and New Jersey, respectively.
As part of its strategy to grow its storage portfolio, the commencement of the operations of these two storage facilities marks the achievement of 62MW/62MWh total storage capacity by the company in the first half of 2023.
Ormat’s Battery Storage Strategies
Ormat is rapidly expanding its dominion in energy storage. In 2022, the company commissioned one energy storage facility with a total capacity of 5MW/20 MWh in California. Ormat is currently in the process of constructing eight energy storage projects with a total capacity of 204 MW/464 MWh in California, Texas, New Jersey and Ohio.
In addition, the company has an approximate 3GW/10GWh pipeline of potential projects in different stages of development across the United States. This will support its target to reach an energy storage portfolio of 352 MW by the end of 2024 and 500MW-530MW by 2025.
The company aims to enhance its current 83 MW portfolio of energy storage by an additional 230 to 290 MW or 550 to 660 MWh by the year end 2023. This addition will enable Ormat to reach a total storage portfolio of 313 to 373 MW by 2023.
Such initiatives will help ORA boost its long-term growth in the Energy Storage segment market, thus allowing it to establish a leading position in the U.S. energy storage market and boost its revenue generation prospects.
The US Battery Energy Storage System Market’s Boom
The rapidly increasing clean energy adoption is providing an edge for alternative energy companies to expand their footprint in the battery energy storage market. Per the Wood Mackenzie report, the U.S. battery energy storage system market is expected to install almost 75 GW from 2023 to 2027.
This unfolds substantial growth opportunities for companies like Ormat. A few other alternative energy companies that may benefit from the expanding battery energy storage market are Ameresco AMRC, Fluence Energy FLNC and Energy Vault NRGV.
Ameresco is a leader in energy storage system development, power storage, solar energy storage and battery energy storage at the enterprise level. Ameresco, in collaboration with Atura Power, announced in June 2023 that its joint venture was selected to build a 250 MW, 1,000 MWh battery energy storage system.
Ameresco boasts a long-term earnings growth rate of 23.9%. The Zacks Consensus Estimate for AMRC’s 2024 sales indicates a growth rate of 17.7% from the prior-year estimated figure.
Fluence is a global market leader in energy storage products and services and cloud-based software for renewables and storage assets. It announced the completion of a 570 MW battery-based energy storage portfolio supplied to SMC Global Power Holdings Corp. in April 2023.
The Zacks Consensus Estimate for Fluence Energy’s 2023 sales indicates a growth rate of 64.1% from the prior-year reported figure. FLNC shares have appreciated 49.9% in the past six months.
Energy Vault is a leader in sustainable grid-scale energy storage solutions. NV Energy, Nevada’s largest public utility, awarded Energy Vault a project in December 2022 for the deployment of a short-duration energy storage solution. The Battery Energy Storage System, one of the largest in Nevada, is expected to start construction in the second quarter of 2023, with commercial operation expected by the end of 2023.
The Zacks Consensus Estimate for Energy Vault’s 2023 sales indicates a growth rate of 157.9% from the prior-year reported figure. The Zacks Consensus Estimate for NRGV’s 2023 earnings suggests a growth rate of 3.1% from the prior-year reported figure.
Price Performance
In the past year, shares of Ormat have risen 11.5% against the industry’s decline of 12.9%.
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Zacks Rank
Ormat currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Ameresco, Inc. (AMRC) : Free Stock Analysis Report
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