Ormat Announces Commercial Operation of Hinesburg Battery Energy Storage System, Under an Agreement With Vermont Electric Coo...
October 24 2019 - 5:55AM
Ormat Technologies, Inc.1 (NYSE: ORA) today announced the
commercial operation of the Hinesburg Battery Energy Storage System
(Hinesburg BESS) under an agreement with Vermont Electric
Cooperative (VEC). The project is a collaborative effort between
our wholly owned subsidiary, Viridity Energy Solutions, Inc.
(Viridity), VEC, and WEG Electric Corp (WEG). A ribbon cutting
ceremony to officially mark the launch of Hinesburg BESS is
scheduled for 3p.m. on October 24, 2019 at the project site, which
is located at 1121 Pond Brook Road Hinesburg, Vermont.
Through an innovative partnership structure,
Viridity teamed with WEG to compete for the project via a
competitive RFP process and was selected to develop and install the
BESS in the fall of 2017.
“We brought together the best products, services
and engineering talent to deliver a battery energy storage system
that will provide cost and reliability benefits to VEC and its
customers for years to come,” commented Isaac Angel, Chief
Executive Officer. “The system, which was delivered according to
the agreed upon schedule, not only supplies up to 4 megawatt hours
of energy at peak consumption times, but also provides much needed
ancillary services to the region's power grid. We are proud to
bring on-line our first BESS project in New England, as part of our
strategy to develop, own and operate energy storage facilities in
several key US markets, also including PJM, Texas and
California.”
Under the terms of the agreement with VEC, Ormat
via Viridity built, owns and operates the lithium battery energy
storage system and will provide coincident peak load reduction
services to VEC over a minimum term of 10 years. Now in commercial
operation, Viridity schedules, dispatches, monitors and supports
the system 24 hours a day, 365 days a year to achieve VEC’s and
Ormat’s mutual business objectives. The Hinesburg BESS increases
flexibility for VEC, allowing it to draw power from the battery
during peak demand times to reduce VEC’s transmission costs and
also help stabilize fluctuations in voltage and frequency as the
supply and demand for electricity varies. VEC and its customers
benefit from the peak load management services while Ormat benefits
from generating revenues by operating the system in the merchant
markets managed by the New England Independent System Operator
(ISONE).
WEG’s Vermont based energy storage business unit
served as system integrator and equipment supplier providing a
turnkey solution that interfaces with Viridity’s on-site energy
management system and remote network operations center. WEG’s
inverters and controls are integrated with Samsung lithium
batteries and balance of system components at the VEC owned site,
which is adjacent to VEC’s Hinesburg substation. WEG also provided
overall engineering and construction, testing and commissioning
services of the Hinesburg BESS and is currently providing
operations and maintenance related services.
The system is sized to provide a guaranteed 1MW
discharge during one to four hours per forecasted event over the
ten-year agreement.
“Energy storage as a service, where utilities
and other customers can avoid a capital investment, and only pay
for the benefits received will be an enabler for rapid deployment
on the grid, similar to what was done in the solar industry over
the last 10 years,” remarked Chris McKay, Director of Sales for
WEG’s BESS business. “We’re proud that our Vermont based
engineering and project team was able to execute for a local
utility like VEC through our partnership with Ormat via
Viridity.”
“Storage is a key part of the energy
transformation that is now thoroughly underway to ensure an
affordable and reliable grid,” said Rebecca Towne, CEO of Vermont
Electric Cooperative. “This one megawatt battery is VEC’s first
utility-scale storage project and it is already helping VEC save up
to $100,000 per year by reducing peak loads. It will also help to
reduce regional carbon emissions during peak times when the grid
relies on dirtier, fossil-fuel powered generators across New
England. We are proud of this project and appreciate this
successful partnership with WEG and Viridity.”
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 the objective of becoming a leading
global provider of renewable energy. 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. With 77 U.S. patents, Ormat’s power solutions have
been refined and perfected under the most grueling environmental
conditions. Ormat has 584 employees in the United States and 762
overseas. Ormat’s flexible, modular solutions for geothermal power
and REG are ideal for vast range of resource characteristics. The
Company has engineered, manufactured and constructed power plants,
which it currently owns or has installed to utilities and
developers worldwide, totaling over 2,900 MW of gross capacity.
Ormat’s current 917 MW generating portfolio is spread globally in
the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe.
Ormat expanded its operations to provide energy storage and energy
management solutions, by leveraging its core capabilities and
global presence as well as through its Viridity Energy Solutions
Inc. subsidiary.
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. 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. Actual
future results may differ materially from those projected as a
result of certain risks and uncertainties.
For a discussion of such risks and
uncertainties, see "Risk Factors" as described in Ormat’s Form 10-K
filed with the Securities and Exchange Commission (“SEC”) on March
1, 2019 and from time to time, in Ormat’s quarterly reports on Form
10-Q that are filed with the SEC.
These forward-looking statements are made only
as of the date hereof, and we undertake no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise.
1 Ormat Technologies, Inc. is also referred to
herein as the “Company”, “Ormat”, “we” or “us”
Ormat
Technologies Contact: |
Relations
Agency Contact: |
Smadar Lavi |
Rob Fink |
VP Corporate Finance and Head of Investor Relations |
FNK IR |
775-356-9029 (ext. 65726) |
646-809-4048 |
slavi@ormat.comInvestor |
rob@fnkir.com |
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