Ormat Technologies, a geothermal and renewable energy company, has entered into a $62 million hybrid tax equity partnership with Morgan Stanley Renewables. The funding will be used for the development of solar and energy storage projects in the U.S.
The project portfolio comprises the 60 MW/129 MWh Lower Rio energy storage project, the 35 MW/140 MWh Arrowleaf storage, and the 42 MW solar projects, which are expected to reach commercial operation by the end of 2025.
Ormat’s current total generating portfolio is stated to be 1,538 MW, with a 1,248 MW geothermal and solar generation portfolio that is spread globally and a 290 MW energy storage portfolio that is located in the U.S.
Ormat was represented in the transaction by Sheppard Mullin Richter & Hampton, and Morgan Stanley Renewables was represented in the transaction by Willkie Farr & Gallagher.
“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.”
According to Mercom’s Q1 2025 Solar Funding and M&A report, announced large-scale project funding increased by 27% in Q1 2025 compared to Q1 2024.
Last week, Doral Renewables, a utility-scale renewable energy project developer, secured $1.5 billion in construction project financing for the Mammoth South, Mammoth Central I, and Mammoth Central II solar projects in Pulaski County, Indiana. All three projects have a generation capacity of 300 MWac each and form part of the larger 1.3 GW Mammoth Solar project.
