Ormat Signs Long-Term Geothermal Power Agreement with Berkshire Hathaway

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: 1 day ago

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ORA-2.56%

Should l Buy ORA?

Source: seekingalpha

Long-Term Power Agreement: Ormat Technologies has signed a long-term geothermal power purchase agreement with Berkshire Hathaway's NV Energy, expected to provide up to 150 MW of new geothermal capacity for Google's operations in Nevada, significantly enhancing its renewable energy supply capabilities.
Project Development Structure: The agreement establishes a portfolio structure that allows Ormat to develop a series of new geothermal projects in Nevada, with commercial operations expected to begin as early as 2028 and continue through 2030, strengthening the company's strategic positioning in the renewable energy market.
Growing Electricity Demand: Ormat CEO Doron Blachar noted that AI is fundamentally increasing electricity demand across the technology sector, and geothermal power is uniquely positioned to deliver the reliable, carbon-free energy required to support this growth, further solidifying the company's market position.
Market Coverage: NV Energy is the primary investor-owned utility in Nevada, serving 1.4 million customers and 56 million tourists annually, covering over 90% of the state's residents, highlighting the strategic importance of Ormat's partnership with them.

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Analyst Views on ORA

Wall Street analysts forecast ORA stock price to fall

8 Analyst Rating

6 Buy

2 Hold

0 Sell

Strong Buy

Current: 124.220

Low

111.00

Averages

120.00

High

135.00

Current: 124.220

Low

111.00

Averages

120.00

High

135.00

Citi

Neutral

maintain

$110 -> $128

2026-02-18

New

Reason

Citi

Price Target

$110 -> $128

AI Analysis

2026-02-18

New

maintain

Neutral

Reason

Citi raised the firm's price target on Ormat Technologies to $128 from $110 and keeps a Neutral rating on the shares.

Jefferies

Buy -> Hold

downgrade

$125 -> $130

2026-02-13

Reason

Jefferies

Price Target

$125 -> $130

2026-02-13

downgrade

Buy -> Hold

Reason

Jefferies downgraded Ormat Technologies to Hold from Buy with a price target of $130, up from $125. While "bullish" on geothermal given PPA inflation and power demand themes in the U.S., for Ormat the firm thinks much of the EGS and data-center upside is already reflected in shares, the analyst tells investors. The firm remains bullish on Ormat's long-term trajectory, with geothermal expansion supported by rising U.S. demand for baseload power, but it finds valuation "challenging" at current share levels as value increasingly shifts toward the Development platform.

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About ORA

Ormat Technologies, Inc. is a geothermal and vertically integrated company engaged in geothermal and recovered energy generation (REG). 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 owns or has installed for utilities and developers worldwide, totaling approximately 3,400 megawatts (MW) of gross capacity. Its segments include Electricity Segment, Product Segment and Energy Storage Segment. Its Electricity segment develops, builds, owns and operates geothermal, solar PV and recovered energy-based power plants in the United States and geothermal power plants in other countries around the world. Product segment designs, manufactures, and sells equipment for geothermal and recovered energy-based electricity generation.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Ormat Technologies Signs Long-Term Geothermal PPA with NV Energy

1 day agoBenzinga

Clean Energy Agreement: Ormat Technologies has signed a long-term geothermal Power Purchase Agreement (PPA) with NV Energy to support Alphabet's Google operations in Nevada, with plans to develop up to 150 megawatts of new geothermal capacity, enhancing the company's growth in renewable energy.
Project Timeline: The agreement encompasses multiple geothermal projects expected to come online between 2028 and 2030, with a contract term of 15 years, ensuring a stable long-term revenue stream while facilitating efficient phased development across sites.
Positive Market Reaction: Ormat's shares rose 5.54% following the announcement, trading at $124.74, indicating a strong upward trend as the stock approaches its 52-week highs despite mixed overall market performance.
Analyst Ratings: The stock carries a Buy rating with an average price target of $110.69; while Jefferies downgraded it to Hold, the target adjustments from Oppenheimer and Barclays reflect confidence in Ormat's future growth prospects.