Time New York: Thu 19 Apr 05:56 am  |  Save 15% on H&R Block Online

  
caticonslite_bm_alt

Ormat’s Unit to Build 40MW Storage, Increase Grid Resilience

Zacks

Ormat Technologies, Inc. ORA announced that its subsidiary, Viridity Energy Solutions, Inc. will start the construction of two 20 megawatt (MW)/20MWh utility scale, in-front-of-the-meter battery energy storage systems (“BESS”) located in Plumsted Township and Alpha, NJ.

The BESS will assist in balancing energy demand in the electricity grid and is expected to generate revenues in the range of $7-$8 million in 2019. The revenues will be based on spot price, which generally varies from period to period.

Details of the Project

Viridity Energy Solutions will utilize Dynapower Company’s inverters and LG Chem’s modules for the two 20MW/20MWh BESSs. In addition, Viridity’s VPower™ software will provide the visualization, optimization, economic value stacking and automated control of the BESS, which in turn will result in better performance of the electric grid.

Importance of the Storage Project

Our general conception is that electricity needs to be consumed as and when it is produced. However, development of the utility-scale battery storage projects has changed that concept as it helps in the storage of electricity. Batteries store electricity at times of oversupply when market prices are low and release it later when there is a shortage during high prices at peak hours or when there is a scarcity in supply from other sources of electricity generation.

Plus, the increasing generation of electricity from renewable sources like solar, wind and water also increases the need and importance of battery storage projects. Renewable sources like sun rays are not available 24×7 to satisfy our demand for electricity, so these batteries help to store the energy to be used later when sun rays are not available.

Future of Energy Storage

Per U.S. Energy Information Administration (EIA) release, more than 700 MW of battery storage units have already been installed in the United States.

Large utilities like NextEra Energy NEE, Duke Energy DUK and National Grid plc NGG have started to invest in battery storage projects. We expect more battery storage units to be installed across the United States, given the increasing production of electricity from renewable sources.

The research report from IHS indicates the global energy storage market to expand at a very fast pace, with total installation surging from 6 gigawatts (GW) in 2017 to more than 40 GW by 2022.

Price Movement

In a month’s time, shares of Ormat Technologies have outperformed its industry. The stock has gained 3.4% compared with the industry’s decline of 4.4%.



Zacks Rank

Ormat Technologies has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Breaking News: Cryptocurrencies Now Bigger than Visa

The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.

Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.

Click here to access these stocks. >>



Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.