Ormat’s Shirk Facility Starts Operations with 80MW/320MWh Capacity and 40% ITC
Ormat Technologies began commercial operations at its Shirk facility, an 80MW/320MWh battery energy storage system under a 15-year Resource Adequacy Purchase and Sale Agreement with the City of Riverside. The project qualifies for a 40% Investment Tax Credit, monetized via its hybrid tax equity partnership with Morgan Stanley Renewables.
1. Shirk Facility Commercial Operation
Ormat Technologies has commenced commercial operations at the Shirk Energy Storage Facility, featuring an 80MW/320MWh battery energy storage system in Visalia, California, designed to deliver flexible capacity to the regional grid.
2. Fifteen-Year Resource Adequacy Contract
The Shirk project secures capacity under a 15-year Resource Adequacy Purchase and Sale Agreement with the City of Riverside, ensuring predictable revenue streams and contributing to California’s grid reliability requirements.
3. Investment Tax Credit Monetization
Shirk qualifies for a 40% Investment Tax Credit, which Ormat plans to monetize through its existing hybrid tax equity partnership with Morgan Stanley Renewables, supporting project financing and enhancing returns.
4. Strategic Portfolio Impact
This milestone boosts Ormat’s U.S. energy storage portfolio beyond 495MW, strengthens long-term revenue visibility, and advances its strategy to build a diversified, contracted battery storage platform.