Geothermal power generation is becoming a viable solution to the US's and world's reliance on fossil fuels. Ormat Technologies Inc. is best positioned in the geothermal industry.
Most renewable resource power generation is still expensive and has disadvantages that still outweigh the benefits, strictly from a business perspective. Geothermal energy comes as one of the very few renewable energies that is not intermittent (running 24/7), does not rely on an underlying resource taking resource price risk out of the equation and is relatively cheap to generate on a kilowatt measure compared to other renewable energies.
Geothermal price has come down partly due to increasing natural gas and oil prices during much of this period and, equally important, to newly enacted legislative and regulatory requirements and incentives, such as state renewable portfolio standards and federal tax credits.
