Ormat Technologies Inc. (ORA) is actively expanding its geothermal and energy storage capacities amid growing global demand for renewable energy. The company, which achieved an 81.3% share in the geothermal electricity segment of its generation capacity as of 2025, made a significant acquisition in January 2026 by purchasing the Hoku solar and storage facility in Hawaii for $79.3 million. This facility includes a 30-megawatt solar installation and a corresponding battery storage system, aligned with a long-term power purchase agreement.
In addition, Ormat plans to invest $111 million in energy storage assets, aiming to develop six projects that will contribute 397 MW/1,488 MWh to its portfolio, ultimately targeting a U.S. storage capacity of between 950-1,050 MW and 2,500-2,900 MWh by the end of 2028.
Despite its growth, Ormat faces challenges, including tariff-related risks impacting procurement costs due to reliance on globally sourced equipment. Additionally, geopolitical tensions in regions like Israel have introduced supply chain disruption risks, potentially affecting their operational timelines and costs.
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