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Ormat Technologies has announced a $62 million Hybrid Tax Equity partnership with Morgan Stanley Renewables, Inc. The investment will support the development of three clean energy projects, expected to reach commercial operation by the end of 2025. The transaction includes the Lower Rio energy storage facility, a 60MW/120MWh project, and the Arrowleaf site, which combines 35MW/140MWh of energy storage with a 42MW solar installation. These projects are part of Ormat’s strategy to expand its portfolio of renewable and storage assets across the United States. “This Hybrid Tax Equity partnership is the first of its kind for our Energy Storage portfolio and highlights the innovative efforts we are taking to optimize the projects’ economics and the Company’s profitability to ensure that we have the funding we need to support our long-term growth, while simultaneously helping advance our explicit goal of monetizing $160 million of tax benefits this year,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “By continuing to effectively monetize the benefits of ITCs for our growing Energy Storage project portfolio through 2026, we are strengthening our ability to further invest in our development pipeline and ensure that we remain well-positioned to support the growing demand for energy storage projects.” This partnership marks a significant milestone for Ormat in securing flexible capital structures to support the growth of hybrid clean energy solutions. The hybrid tax equity model allows investors to participate in the tax benefits of both solar and storage assets under a single financing structure. |
