Ormat to Develop Telaga Ranu Geothermal Project in Indonesia

Ormat Technologies, Inc. ORA recently announced that it has been awarded the Telaga Ranu Geothermal Working Area by the Government of Indonesia under the Ministry of Energy and Mineral Resources. This award enhances Ormat’s development pipeline and aligns with its long-term growth strategy in Indonesia.

ORA Grows Indonesia Pipeline With Telaga Ranu Concession

Telaga Ranu concession offers strategic and financial benefits that strengthen Ormat’s presence in Indonesia. Located in a high feed-in tariff zone and aligned with Indonesia’s energy transition goals, the site has the potential to deliver up to 40 megawatts (MW) of baseload geothermal capacity, supporting favorable project economics and long-term revenue visibility. Development of the site by the end of 2030 would aid Indonesia’s plan to replace diesel-based generation with reliable renewables, reinforcing national decarbonization efforts, improving regulatory support and lowering development risk. 

The project expands Ormat’s exploration pipeline to roughly 200 MW, complementing its existing 59 MW operating asset in the country. By leveraging its proven geothermal expertise, Ormat not only enhances its development pipeline but also deepens its footprint and credibility with Indonesian stakeholders in a core global geothermal market.

Ormat’s Solid Standing in the Geothermal Industry

As the effects of climate change intensify, momentum behind renewable energy solutions is growing to reduce emissions. Geothermal facilities deliver constant, weather-proof electricity generation, providing reliable baseload power and valuable grid support during system failures or interruption events.

Per the reports from the Mordor Intelligence firm, the geothermal energy market is likely to register a CAGR of 9.05% during 2026-2031. As a major participant in geothermal power generation, Ormat Technologies is well-positioned to capitalize on these favorable market growth trends.

In the third quarter of 2025, Ormat Technologies entered into two Geothermal Exploration and Energy Conversion Agreements, a new form of Power Purchase Agreement with an Indonesian utility, each supporting up to 20 MW of geothermal capacity. By the end of September 2025, the company’s total capacity reached 1.6 gigawatts, which includes geothermal power plants. Ormat Technologies expects to develop nearly 200 MW of projects by the end of 2027, with 121 MW dedicated to geothermal energy across nine projects.

Other Stocks to Watch

Other companies that are expected to gain from the expanding geothermal energy market are discussed below:

Baker Hughes Company BKR: The company brings more than a decade of experience in geothermal energy. It has developed a prototype metal-to-metal mud motor featuring a mud-lubricated bearing assembly and a titanium transmission, designed to harness energy from an enhanced geothermal system in Iceland.

BKR has a long-term (three to five years) earnings growth rate of 12.27%. The Zacks Consensus Estimate for 2026 sales is pegged at $27.56 billion, which suggests an improvement of 0.6%.

Halliburton Company HAL: The company provides a comprehensive portfolio of products, technologies, and integrated services aimed at reducing costs and mitigating risks in geothermal projects. It works closely with customers to deliver tailored solutions that address a broad spectrum of geothermal project needs.

HAL delivered an average earnings surprise of 4% in the last four quarters. The Zacks Consensus Estimate for 2026 sales is pegged at $21.55 billion.

ORA Stock Price Movement

In the past six months, shares of Ormat Technologies have risen 31.6% compared with the industry’s growth of 11.7%.

ORA’s Zacks Rank & A Key Pick

Ormat Technologies currently carries a Zacks Rank #3 (Hold). A better-ranked stock from the same industry is Enerflex Ltd. EFXT, which has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EFXT delivered an average earnings surprise of 181.63% in the last four quarters. The Zacks Consensus Estimate for 2026 earnings per share is pegged at $1.18, which suggests an improvement of 13.5%.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research