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: Jan 13 2026
0mins
Should l Buy ORA?
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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ORA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ORA
Wall Street analysts forecast ORA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORA is 120.00 USD with a low forecast of 111.00 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.
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 121.260
Low
111.00
Averages
120.00
High
135.00
Current: 121.260
Low
111.00
Averages
120.00
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.
Energy Companies Supported by Jeff Bezos and Bill Gates Aim for IPO
- Public Offerings: Two novel energy companies have filed for initial public offerings (IPOs), allowing investors to participate in emerging trends in electricity generation.
- Future Impact: These companies aim to reshape the electricity generation landscape over the next decade, contingent on their success.
See More
Oklo Shares Raised to Buy Rating; Meta Nuclear Agreement Marks Significant Progress.
- Oklo's Popularity: Oklo is gaining attention as a notable nuclear stock, attracting both interest and scrutiny from investors.
- Commercial Uncertainty: There are ongoing uncertainties regarding Oklo's journey towards commercial viability.
- Recent Developments: A recent development has emerged that may alleviate some of the concerns held by investors.
- Investor Sentiment: The combination of popularity and uncertainty highlights the complex sentiment surrounding Oklo in the market.
See More
Ormat Technologies (ORA) Invests $25M in Sage Geosystems' $97M Series B Funding
- Investment Strategy: Ormat Technologies announces a $25 million equity investment in Sage Geosystems, participating in its $97 million Series B funding round aimed at addressing the surging electricity demand driven by artificial intelligence.
- Technology Pilot: Sage plans to pilot its Pressure Geothermal technology at an existing Ormat power plant, with the goal of extracting geothermal heat from hot dry rock to accelerate the market introduction of next-generation geothermal solutions.
- Development Rights: Upon successful completion of the pilot, Ormat will have the right to develop, build, own, and operate geothermal power plants and energy storage projects utilizing Sage's technology, thereby enhancing its market position in renewable energy.
- Market Potential: Although geothermal energy currently meets only a small fraction of U.S. power demand, the Department of Energy projects that next-generation systems could provide up to 120 GW of capacity by 2050, enough to power 90 million homes.
See More
Oklo Stock Volatility Following Deal with Meta Platforms
- Stock Volatility: Oklo's stock surged to $105.31 following its deal with Meta, but subsequently fell on Monday and Tuesday, indicating a waning market interest in the stock.
- Profit-Taking by Investors: The significant rise in stock price last week likely prompted investors to take profits this week, resulting in short-term pressure on Oklo's stock and reflecting a shift in market sentiment.
- Geothermal Competition: The 20-year power purchase agreement signed by Ormat with Switch may raise investor concerns about diminishing opportunities for Oklo among data center operators, especially as geothermal energy emerges as an alternative.
- Bull Case Intact: Despite the stock's decline, Oklo's fundamentals remain unchanged, as the geographical limitations of geothermal energy make it a less viable alternative to nuclear reactors in many parts of the U.S., suggesting long-term investment value still exists.
See More
Oklo (OKLO) Stock Drops 4.8% as Investor Enthusiasm Cools
- Stock Fluctuation: After a rise last week due to news of its deal with Meta, Oklo's stock has closed lower for two consecutive days, indicating a trend of profit-taking among investors.
- Market Reaction: As of 11:35 a.m. ET, Oklo's shares are down 4.8%, currently priced at $95.01 with a market cap of $15 billion, reflecting a decline in market interest.
- Competitive Pressure: Geothermal company Ormat signed a 20-year power purchase agreement with data center operator Switch, potentially diminishing Oklo's opportunities in the data center market as investors speculate geothermal energy may serve as an alternative to nuclear power.
- Investor Confidence: Despite the stock's decline, analysts believe Oklo's fundamentals remain unchanged, as geothermal energy is geographically limited and cannot fully replace nuclear power, maintaining a bullish outlook on Oklo's investment value.
See More
S&P 500 Futures Drop in Pre-Market Trading; L3Harris Technologies and Revvity at the Forefront
- Market Opening: U.S. stock markets are set to open in two hours.
- L3Harris Technologies Inc. Performance: L3Harris Technologies Inc. (LHX) saw a 13.0% increase in pre-market trading.
- Revvity Inc. Performance: Revvity Inc. (RVTY) experienced a 6.9% rise in pre-market trading.
- Overall Market Sentiment: The pre-market gains indicate positive sentiment for these companies ahead of the market opening.
See More
Energy Companies Supported by Jeff Bezos and Bill Gates Aim for IPO
- Public Offerings: Two novel energy companies have filed for initial public offerings (IPOs), allowing investors to participate in emerging trends in electricity generation.
- Future Impact: These companies aim to reshape the electricity generation landscape over the next decade, contingent on their success.
See More
Oklo Shares Raised to Buy Rating; Meta Nuclear Agreement Marks Significant Progress.
- Oklo's Popularity: Oklo is gaining attention as a notable nuclear stock, attracting both interest and scrutiny from investors.
- Commercial Uncertainty: There are ongoing uncertainties regarding Oklo's journey towards commercial viability.
- Recent Developments: A recent development has emerged that may alleviate some of the concerns held by investors.
- Investor Sentiment: The combination of popularity and uncertainty highlights the complex sentiment surrounding Oklo in the market.
See More
Ormat Technologies (ORA) Invests $25M in Sage Geosystems' $97M Series B Funding
- Investment Strategy: Ormat Technologies announces a $25 million equity investment in Sage Geosystems, participating in its $97 million Series B funding round aimed at addressing the surging electricity demand driven by artificial intelligence.
- Technology Pilot: Sage plans to pilot its Pressure Geothermal technology at an existing Ormat power plant, with the goal of extracting geothermal heat from hot dry rock to accelerate the market introduction of next-generation geothermal solutions.
- Development Rights: Upon successful completion of the pilot, Ormat will have the right to develop, build, own, and operate geothermal power plants and energy storage projects utilizing Sage's technology, thereby enhancing its market position in renewable energy.
- Market Potential: Although geothermal energy currently meets only a small fraction of U.S. power demand, the Department of Energy projects that next-generation systems could provide up to 120 GW of capacity by 2050, enough to power 90 million homes.
See More
Oklo Stock Volatility Following Deal with Meta Platforms
- Stock Volatility: Oklo's stock surged to $105.31 following its deal with Meta, but subsequently fell on Monday and Tuesday, indicating a waning market interest in the stock.
- Profit-Taking by Investors: The significant rise in stock price last week likely prompted investors to take profits this week, resulting in short-term pressure on Oklo's stock and reflecting a shift in market sentiment.
- Geothermal Competition: The 20-year power purchase agreement signed by Ormat with Switch may raise investor concerns about diminishing opportunities for Oklo among data center operators, especially as geothermal energy emerges as an alternative.
- Bull Case Intact: Despite the stock's decline, Oklo's fundamentals remain unchanged, as the geographical limitations of geothermal energy make it a less viable alternative to nuclear reactors in many parts of the U.S., suggesting long-term investment value still exists.
See More
Oklo (OKLO) Stock Drops 4.8% as Investor Enthusiasm Cools
- Stock Fluctuation: After a rise last week due to news of its deal with Meta, Oklo's stock has closed lower for two consecutive days, indicating a trend of profit-taking among investors.
- Market Reaction: As of 11:35 a.m. ET, Oklo's shares are down 4.8%, currently priced at $95.01 with a market cap of $15 billion, reflecting a decline in market interest.
- Competitive Pressure: Geothermal company Ormat signed a 20-year power purchase agreement with data center operator Switch, potentially diminishing Oklo's opportunities in the data center market as investors speculate geothermal energy may serve as an alternative to nuclear power.
- Investor Confidence: Despite the stock's decline, analysts believe Oklo's fundamentals remain unchanged, as geothermal energy is geographically limited and cannot fully replace nuclear power, maintaining a bullish outlook on Oklo's investment value.
See More
S&P 500 Futures Drop in Pre-Market Trading; L3Harris Technologies and Revvity at the Forefront
- Market Opening: U.S. stock markets are set to open in two hours.
- L3Harris Technologies Inc. Performance: L3Harris Technologies Inc. (LHX) saw a 13.0% increase in pre-market trading.
- Revvity Inc. Performance: Revvity Inc. (RVTY) experienced a 6.9% rise in pre-market trading.
- Overall Market Sentiment: The pre-market gains indicate positive sentiment for these companies ahead of the market opening.
See More
