Ormat Technologies on July 23 announced the signing of a 15-year resource adequacy purchase and sale agreement with the City of Riverside, Calif., for the 80-megawatt /320-megawatt hour Shirk Battery Energy Storage System located in Visalia, California.
The Shirk project, which is currently expected to be eligible for a 40% Investment Tax Credit, “represents Ormat’s continued commitment to strategically growing its Energy Storage segment in the key California energy market,” the company said.
The agreement is Ormat’s first storage contract with the City of Riverside and is the City’s first long-term RA Agreement.
Critically, included in the RA agreement is a guaranteed commercial operation date of March 1, 2026, that the company currently believes can be achieved by the end of 2025.
“This highlights Ormat’s enhanced and differentiated execution capabilities as the Company continues to build its pipeline of energy storage projects and transitions to a more stable and profitable portfolio,” it said.
“The City of Riverside is pleased to be partnering with Ormat Technologies on this Shirk Energy Storage project,” said Dr. Scott Lesch, Assistant General Manager for Riverside Public Utilities - Power Resources Division. “This Shirk BESS will help the City meet its long-term RA needs in a cost-effective manner, while simultaneously providing for additional battery energy storage deployment within the CAISO balancing authority.”
