Ormat Technologies Commenced Commercial Operation of Arrowleaf, Its First Hybrid Solar-Plus-Storage Project

• PROJECT OPERATES UNDER A LONG-TERM TOLLING AGREEMENT WITH SAN DIEGO COMMUNITY POWER
  
  
  
  
• ARROWLEAF EXPANDS ORMAT’S OPERATING PORTFOLIO TO APPROXIMATELY 1.7 GW
  
  
  
  
• HYBRID TAX EQUITY PARTNERSHIP TRANSACTION CLOSED IN DECEMBER
  
  
  
  

RENO, Nev., Jan. 06, 2026 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. () (the “Company” or “Ormat”), a leading geothermal and renewable energy company, today announced the commencement of commercial operations of its Arrowleaf solar and battery energy storage project in California. Arrowleaf is Ormat’s first hybrid solar-plus-storage facility, marking a significant milestone in the Company’s development and strategic growth plans.

The hybrid Arrowleaf facility has approximately 42MW of solar generation capacity and 35MW/140MWh of energy storage. The project operates under a long-term tolling agreement with San Diego Community Power, delivering clean, renewable, and affordable energy to nearly 1 million customers.

The Arrowleaf project also reflects Ormat’s disciplined capital management strategy, notably its ability to simultaneously monetize the project’s investment tax credits through a hybrid tax equity partnership with Morgan Stanley Renewables Inc, which has resulted in approximately $38 million of upfront proceeds.

“Arrowleaf marks a major milestone for Ormat, as it is our first hybrid solar and energy storage project, and bringing our total operating portfolio to approximately 1.7 gigawatts,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “With this project’s tax benefits having been monetized in December 2025, we successfully collected over $160 million of tax credits in 2025, exceeding our full-year target. This accomplishment further strengthens our balance sheet and cash flow trajectory while supporting continued growth across all of our segments. Arrowleaf’s commercial operation extends our positive momentum into 2026 as we continue advancing toward our 2028 growth targets.”

ABOUT ORMAT TECHNOLOGIES

With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company, and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,600MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,695MW with a 1,310MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 385MW energy storage portfolio that is located in the U.S.

ORMAT’S SAFE HARBOR STATEMENT

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues and Adjusted EBITDA, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, legal, market, industry and geopolitical developments and incentives, demand for renewable energy, and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under "Risk Factors" as described in Ormat’s most recent annual report, and in subsequent filings.

These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.