Global renewables firm Ormat Technologies Inc announced on Monday that its 80-MW/320-MWh Bottleneck Battery Energy Storage System (BESS) in California's Central Valley has officially begun commercial operations.
The facility, now Ormat's largest energy storage project, will provide energy and ancillary services to San Diego Gas & Electric under a 15-year power purchase agreement (PPA) signed in 2022.
The Bottleneck project, eligible for a 40% investment tax credit, is expected to monetise this benefit by the year-end, the company said. Commenting on the launch, Ormat's CEO, Doron Blachar, stated, “We are happy to announce the commencement of operations at Ormat's Bottleneck Battery Storage Facility.”
Blachar added that with Bottleneck's activation, Ormat now operates 270 MW/638 MWh in storage capacity, with six more projects totaling 355 MW/920 MWh currently under construction.
These developments align with Ormat's 2028 portfolio target, which aims to reach between 950 MW and 1,050 MW in power and 2.5 GWh to 2.9 GWh in storage capacity.
Ormat's expansion in California also includes the 80-MW/320-MWh Shirk BESS project, expected to come online by the end of 2025 under a 15-year resource adequacy agreement signed earlier this year.
