Old Heat, New Power: Ormat’s Bold Bet

Ormat’s revival of Nevada’s Blue Mountain plant blends solar and geothermal, signaling a new era for US clean energy reinvention.

25 Jul 2025

When Ormat Technologies bought back the Blue Mountain geothermal plant in Nevada this July, it was acquiring more than a struggling asset. The $88m deal reflects a quiet shift in America’s clean energy strategy: reviving underused infrastructure rather than building anew.

The firm plans to restore geothermal output and install a 13-megawatt solar array alongside it, creating a hybrid system aimed at smoothing power flows through day and night.

“The acquisition of the Blue Mountain geothermal power plant enhances our portfolio and reinforces our commitment to sustainable base-load energy solutions,” said Doron Blachar, Ormat’s chief executive. A long-term supply contract with NV Energy provides a secure outlet for the revived output.

Hybrid renewables are gaining favour. Solar and wind are cheap but intermittent. Geothermal, though expensive to develop, is a rare source of carbon-free baseload power. Combining the two could help utilities meet clean energy targets without sacrificing reliability.

Ormat’s strategy also avoids some of the pitfalls of greenfield development such as permitting delays, uncertain drilling results and rising costs. Instead, it is targeting dormant geothermal assets that can be brought back to life relatively quickly. The firm aims to add 130 megawatts of geothermal capacity in the US by 2026, mostly through such refurbishments.

There are risks. It remains to be seen whether Blue Mountain’s underground heat source can sustain higher output over time. But Ormat has a long history of working with low to medium temperature geothermal systems and optimising them with binary-cycle technology.

The economics of hybridisation will depend on continued support from federal and state incentives, as well as grid operators’ appetite for firm renewables. Still, Ormat’s approach may serve as a template not just for squeezing more power from the earth, but for squeezing more value from old energy infrastructure.