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    Ormat Technologies Starts Commercial Operations on 20-MWh Battery Storage Systems in New Jersey

    Jan. 6, 2025
    The Montague project is expected to be eligible for a 30% Investment Tax Credit through government incentives. Grid-wise it will help increase Ormat Technologies' total capacity in the PJM market to 120 MW/120 MWh.
    Image credit Ormat Technologies
    677beb043b3e881385de7f7f Ormat Bess

    Ormat Technologies, a geothermal and renewable energy technology company, has commenced commercial operations for its 20 MW/20 MWh Montague battery energy storage system located in New Jersey to provide ancillary services on the merchant market to the PJM Interconnection transmission grid.

    The Montague project is expected to be eligible for a 30% Investment Tax Credit through government incentives. Grid-wise it will help increase Ormat Technologies' total capacity in the PJM market to 120 MW/120 MWh.

    “With the addition of Montague, Ormat now operates 290 MW/658 MWh of energy storage projects, and we have several additional projects currently under construction, demonstrating our strong development capabilities and commitment to achieving our 950 MW-1,050 MW/2.5 GWh-2.9 GWh 2028 energy storage portfolio capacity target,” said Doron Blachar, CEO of Ormat Technologies. “The addition of the Montague project brings valuable ancillary services to the PJM market, enhancing the reliability of the grid while also supporting the transition to a cleaner energy future.”

    In April 2024, Ormat announced operations on a 7-MW battery storage project in Howell, New Jersey. The Howell system delivers frequency regulation services to the PJM grid. The company then also commissioned a 12-MW BESS in Ohio.

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    Battery storage installation has been growing expansively in recent years. Last year, the U.S. energy storage market set a new third quarter record with more than 3.4 GW (3,431 MW) and 9,188 MWh in capacity deployed, a report by American Clean Power and research firm Wood Mackenzie indicated.

    Texas installed 1.7 GW in battery storage during that period, triple the pace of the previous quarter, according to the ACP/Wood Mackenzie report..