Ormat Technologies (ORA) Signs 20-Year Power Purchase Agreement with Switch, Boosting Shares to Near Five-Year Highs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Power Purchase Agreement: Ormat Technologies has signed a 20-year power purchase agreement with Switch, which will enable the delivery of approximately 13 MW of geothermal energy starting in Q1 2030, significantly boosting shares to near five-year highs and reflecting market confidence in its long-term growth potential.
- Facility Upgrade Plan: The implementation of this agreement hinges on a major upgrade to the Salt Wells geothermal power plant, expected to be completed by Q2 2026, which will not only enhance generation capacity but also strengthen Ormat's competitive position in the renewable energy market.
- Expansion Potential: Ormat plans to further expand its supply to Switch by adding a 7 MW solar PV facility, which will serve the auxiliary power needs of the geothermal plant, thereby improving overall operational efficiency and sustainability.
- Future Recontracting Opportunities: Ormat CEO Doron Blachar indicated that with the launch of this partnership, there is potential for future recontracting of over 100 MW from its existing fleet, further solidifying the company's market position in the renewable energy sector.
Analyst Views on ORA
Wall Street analysts forecast ORA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORA is 115.78 USD with a low forecast of 100.00 USD and a high forecast of 135.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 115.350
Low
100.00
Averages
115.78
High
135.00
Current: 115.350
Low
100.00
Averages
115.78
High
135.00
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.
