Desert Peak II Geothermal Power Plant, Nevada. F60OTec Q * rely. GREEN ENERGY you can rely on

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1 Desert Peak II Geothermal Power Plant, Nevada GREEN ENERGY you can on F60OTec Q *

2 Disclaimer Statements in this presentation as well as oral statements made by the officers or directors of Ormat Technologies, Inc., its advisors, affiliates or subsidiaries often will contain forward-looking statements. Whenever you read or hear a statement that is not simply a statement of historical fact (such as when we describe what we believe, expect or anticipate will occur, and other similar statements), you must remember that our expectations may not be correct, even though we believe they are reasonable. You should read and listen to these statements completely and with the understanding that actual future results may be materially different from what we expect, as a result of certain risks and uncertainties. For a complete discussion of the risks and uncertainties relating to the forward-looking statements in this presentation, please see Risk Factors as described in the Annual Report on Form 10-K report filed with the Securities and Exchange Commission on March 8, We will not update these forward-looking statements, even though our situation will change in the future. GREEN ENERGY you can on 1

3 Agenda 1. Introduction 2. The global geothermal market today and tomorrow 3. Regulation 4. Growth: opportunities & strategy 5. Competitive landscape 6. Financials 7. Summary GREEN ENERGY you can on 2

4 Ormat Value Proposition A leader in the Geothermal and Recovered Energy Power Business Pure-Play, Clean Energy Growth Company Owns 538 MW* Fully Contracted Generation Base Load Competitive Pricing Visible Cash Flow Vertically-Integrated Explores, Develops, Designs, Constructs, Owns and Operates Technology Leadership Drilling Capabilities Main Shareholder: Ormat Industries, Ltd.- 60% NYSE: ORA Market Cap. ~$1.27B** LTM Revenues: ~$414 M Float: 18.2 M shares 1-Introduction *Including the 50 MW of North Brawley in California which currently operates at approx. 20 MW **As of Aug 27, 2010 GREEN ENERGY you can on 3

5 Environmentally Sound Power Solutions Ormat s key energy solutions 1-Introduction Geothermal Energy Deliver clean, reliable and sustainable electricity Recovered Energy Generation Solution for Energy Saving and Efficiency Unmanned Autonomic Operation Galena 2, Steamboat Complex, Nevada OREG 2 Power Plant, North Dakota GREEN ENERGY you can on Cost effective Environmentally friendly Legislative support 4

6 Business Overview 1-Introduction Power Generation Power Generation 62% of 2009 Revenues 75% of H Revenues Products 38% of 2009 Revenues 25% of H Revenues In operation Geothermal: 485 MW* REG: 53 MW Under construction Geothermal: 119 MW Designs, manufactures and sells units for electricity generation Owns more than 75 U.S. patents and leading technology Under development Geothermal: 140 MW Solar PV: 38 Built approximately 1,300 MW of power plants and over 2,600 remote power units Long-term contracts Installed in 71 countries on 6 continents *Including the 50 MW of North Brawley in California which currently operates at approx. 20 MW GREEN ENERGY you can on 5

7 The Power of Experience 1300 MW of field proven power plants 1-Introduction Near 36 millions hours of OEC experience * * F F F F *Exhaust Temp. at REG projects in gas compressor station applications GREEN ENERGY you can on 6

8 Global Presence Meeting the Needs of Customers in 71 Countries 1-Introduction California, 228 MW Nevada, 109 MW Minnesota, Montana, North & South Dakota, 49.5 MW Colorado, 3.5 MW Hawaii, 30 MW Nicaragua, 26 MW Guatemala, 44 MW Kenya 48 MW Geothermal Power plants Recovered Energy Generation (REG) Remote Power Units GREEN ENERGY you can on 7

9 Global Geothermal Installed Capacity & Potential (MW) 2 - Geothermal Market ,060 1,515 3,100 5, ,660 6,600 1,470 2, GW 685 1,355 Change 73% 70 GW 10.7 GW 18.5 GW Areas with Potential Geothermal Resources Installed 2010 Forecast for 2015 Potential with Today's Technology Potential with Technology Improvement Global Installed Capacity 2010 (MW) Forecast Capacity for 2015 (MW) Estimated Potential with present technology for year 2050 Estimated Potential with EGS for year 2050 Source: "Geothermal Power Generation in the World Update Report" Ruggero Bertani Enel Green Power, via Dalmazia Roma (Italy) April GREEN ENERGY you can on 8

10 Geothermal Generation is Dependable and Cost Effective Cost cent/kw/h Environmental Impact Polluting Environmentally friendly Capacity factor Capacity Factor 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0 0% Solar PV (Single axis) Solar Thermal Hydro-Small Scale Wind Source: Competitive costs of California central station electricity generation technologies, California Energy Commission January 2010, and Ormat. GREEN ENERGY you can on REG CC (Gas) Advanced Nuclear -in service 2018 IGCC (Coal) Biomass Advanced Nuclear Geothermal 9

11 Supportive Legislation 3 - Regulation Unites States ROW Creates Demand State RPS Expected Federal RES RPS Kyoto Protocol Legislation Expected Cap & Trade Support Improves Economics Tax Credit Feed-in Tariff Stimulus Act GREEN ENERGY you can on 10

12 Supportive Legislation U.S.- Renewable Portfolio Standard Adopted by 36 U.S. States and DC as a mandatory law or as a goal 29 States and DC recognize geothermal electric as eligible for RPS 21 States have enacted Energy Efficiency Resource Standards that include some form waste heat recovery Including: Colorado, Nevada, North Dakota and South Dakota 60% 50% 40% 30% 20% 10% 11% 9% 20% 25% State Requirements for Renewable Energy as a % of Total 15% 13% 20% 33%* 19% 18% 3 - Regulation 25% 40% *Executive Order of 33% by end of Source: GREEN ENERGY you can on 0% Nevada California Hawaii

13 U.S.- ARRA (Stimulus Act) key Provisions Tax Incentives 3 - Regulation PTC Extension The act extends the deadline to place geothermal projects in service through 2013 to qualify for PTC Election to Claim ITC The act gives an option to forego PTC and claim a 30% investment tax credit instead Cash Grants 30% cash grant of the project s qualified cost Available for projects that start construction by 2010 or placed in service by 2013 US Treasury GREEN ENERGY you can on 12

14 U.S.- ARRA (Stimulus Act) Key Provision Federal Loan Guarantee Program Available for projects commencing construction by Sept. 30, 2011 US DOE 3 - Regulation Direct Action $338 million allocated by the DOE to support exploration and development of new geothermal sources and technologies Funds and loans allocated for construction and enhancement of transmission line Implementation of smart grid technologies GREEN ENERGY you can on 13

15 Planning Our Growth 4 - Growth Organic growth Geothermal Greenfield development Enhancement & expansion of existing operations Solar PV development Acquisition of new assets for development Operating assets Development assets Investment in research and development GREEN ENERGY you can on 14

16 Planning Our Growth Pace of organic growth depends upon: 4 - Growth Securing leases Ormat s total lease and land position ~430 K acres 28 sites covering ~300 K acres for future development Conducting massive exploration activity in parallel Successful exploration In- house drilling capabilities Well-established resource group Successful development & construction Experienced development & construction team Strong track record of execution & operation; Base load Cash from existing operation & Strong balance sheet GREEN ENERGY you can on 15

17 Short Term Organic Growth 4 - Growth Net Capacity Growth (MW) CAGR 14% * 518* 538* Up to 740 ~200 Additional ~95 MW Under Development YTD 2010 Planning to benefit from available incentives in the US 2013 Existing ownership capacity Under Construction & Development More than 100 MW of U.S. geothermal projects may qualify for the Treasury cash grant and may be supported by the U.S. DOE loan guarantee *Including the 50 MW of North Brawley in California which currently operated at approx. 20 MW and including 100% of the 29 MW Mammoth power plant as of August GREEN ENERGY you can on

18 Financial Strength Financial capabilities to execute our growth plan through Growth CapEx Requirements: approximately $246.0 MM Capital Resource: approximately $465.0 MM June : Construction of new projects: $106.0 MM Development of new projects: $32.0 MM Maintenance CapEx: $24.0 MM Exploration activities: $7.0 MM Production facilities: $4.0 MM Aug. 2010: Mammoth acquisition: $72.5 MM June : $54.2 MM cash and cash equivalent $68.7 MM unused corporate borrowing capacity under existing committed lines of credit Expected: up to. $100.0 MM from project debt financing and Aug. 2010: $142 MM proceeds of senior bond issuance GREEN ENERGY you can on Over $100.0 MM ITC grant for North Brawley Three U.S. projects were mandated to John Hancock for up to $350 million under the U.S. DOE loan guarantee 17

19 Long Term Organic Growth Typical Development Process for Green fields Geothermal Project 4 - Growth Sign Sign PPA PPA Permitting Permitting Locating & Locating & Obtaining Obtaining Land Land Pre-Drilling Pre-Drilling Exploration Exploration Drilling Drilling Permit Permit Exploration Exploration Drilling Drilling Field Field Development Development Equipment Equipment Manufacturing Manufacturing (EPC) (EPC) Start Start up up Operation Operation 3 Years 2 Years Location of site lease agreement Permitting Exploration Initial field development & well testing PPA Plant design Completion field development and equipment manufacturing Plant Permits Gathering system and plant construction Testing and start up Acceptance test Commercial operation GREEN ENERGY you can on 18

20 Exploration for Geothermal Resource Geothermal exploration, is a synthesis of good data, advanced modeling, good scientists and engineers, excellent land position and a little bit of luck The majority of our early exploration studies takes place on computers with data from satellite, aircraft and foot-based surveys The potential for geothermal continues to expand with our continued technologic innovation and application 4-Growth Cascadia C. & E. Europe C. Asia S. America C. Africa Oceania GREEN ENERGY you can on 19

21 Well Positioned for Continued Growth In-House Resource Expertise and Drilling Capabilities 4-Growth Technical Staff 8 Geologists 4 Resource engineers 2 Reservoir engineers 3 Technicians 3 Drilling specialists GeoDrill 4 Drilling rigs 2 work-over rigs Over 100 professional and supporting staff Drilling Specialist Enable us to : Chose high quality lands Increase the number of sites being explored in parallel Reduce exploration costs Geologist Numerical modeling Resource Group Reservoir Engineer Resource Engineer GREEN ENERGY you can on 20

22 Long Term Organic Growth 4 - Growth Ormat is engaged in the largest effort undertaken by a single company to categorize, map, sample and drill Greenfield prospects in the US, in the last 20 years Status of 28 leases for future growth Geographical Breakdown 14 Acquired lease 5 Started studies 6 Advanced pre-drilling Awaiting permits Under Exploration Drilling Enhancement ROW, 3 USA, 25 NV, 14 CA, 3 UT, 3 OR, 2 HI, 2 AK, 1 GREEN ENERGY you can on 21

23 Competitive Landscape Development Equipment Supply Operation 5 - Competition Leases High High Enthalpy No No Competition PPA PPA Vertically Integrated Financial Support from Existing Portfolio Upside from Products Segment Low Low Enthalpy Proven Track Record Geothermal Growth GREEN ENERGY you can on 22

24 Resources and Power Plant Technologies Resource Temperature (ºC) Binary (ORC) Plants Steam Plants Geothermal Combined Cycle Liquid-dominated Steam-dominated Geofluid state Ormat s proprietary technology GREEN ENERGY you can on 23

25 Financial Highlights Financial Capabilities to Execute Growth Plans 6 - Financials Solid Revenue Visibility Solid Liquidity Position Profitable Operations Growth GREEN ENERGY you can on 24

26 Consolidated Revenues (in millions of USD) 6 - Financials Annual Six Months Ended June 30, CAGR % -20 MM (10%) $ $ $415 $ 360-$ $ $ $ Three Months Ended June 30, -3 MM (3%) $99 $ Electricity Product Revenue guidance as provided in Q earnings release; The guidance for 2010 reflect the full consolidation the mammoth complex from Aug, GREEN ENERGY you can on 2010 Revenue Guidance

27 Adjusted EBITDA¹ 6 - Financials Annual Six Months Ended June 30, CAGR % -21 MM (27%) $77 $167 $56 $119 $111 $ Three Months Ended June 30, -16 MM (40%) $40 $ (in millions of USD) ¹ See Appendix Table A - 3 GREEN ENERGY you can on 26

28 EPS 6 - Financials Annual Six Months Ended June 30, 0.67 $ $0.99 $0.70 $ Three Months Ended June 30, (0.03) ¹ See Appendix Table A - 2 GREEN ENERGY you can on 27

29 Balance Sheet Assets June 30, 2010 Dec. 31, 2009 Liabilities and Stockholder s Equity June 30, 2010 Dec. 31, 2009 Current assets: Cash and Cash equivalent $54 $46 Current liabilities: Accounts payable and other current liabilities $102 $77 Restricted cash, cash equivalents & marketable securities Current portion of loan term-debt Receivables Others Due to parent - 10 Total current assets Total current liabilities Long Term Restricted Cash and Cash equivalent and marketable securities 3 3 Other assets Property, plant and equipment, net and construction in process 1,610 1,517 Long-term debt, net of current portion Intangible assets and deferred costs, net Liability associated with sale of tax benefits Deferred lease income Other LT liabilities Total long-term liabilities Total liabilities 1, Total equity Total assets $1,941 $1,855 Total liabilities & equity $1,941 $1,855 Debt to Capital: 44% (in millions of USD) GREEN ENERGY you can on 28

30 Summary Why Invest in Renewable Energy? Climate change conscious environment Growing market Why Geothermal Energy? Base load energy Lowest levelized cost Untapped potential Why Ormat? Pure-play; vertically-integrated; strong track record Financial stability with track record for profitability Well positioned for continued growth Multidisciplinary technological leadership Upside from Solar PV development 7 - Summary GREEN ENERGY you can on 29

31 Thank You For further information: / IR@ormat.com BURDETTE GEOTHERMAL POWER PLANT, NEVADA GREEN ENERGY you can on COPYRIGHT ORMAT. All rights reserved. This document contains information proprietary to ORMAT. Reproduction in any form without prior written permission is strictly prohibited 30

32 Projects under Construction # Project Location Projected Generating Capacity (MW) Status Projected Commercial Operation / Completion of Construction May Qualify for ITC Cash Grant 1 Puna Enhancement Hawaii 8 Concluded the PPA terms with HELCO. Waiting for the approval of the Puna power plant lender to sign the PPA. End Jersey Valley - Phase I Nevada 15 Continuing with the construction of the first phase. Construction permits have been obtained and civil work has stared at the site. End McGinness Hills- Phase I 4 Tuscarora - Phase I Nevada 30 Continuing with the field development. Progressing with equipment fabrication and with the permitting process Nevada 16 Continue with the field development of phase I. Drilling is progressing Carson Lake Nevada 20 Awaiting permits to continue drilling East Brawley California 30 The project is still awaiting the required construction permits and the understanding of NB injection solution TBD Total 119 MW 6 projects GREEN ENERGY you can on 31

33 Projects under Development # Project Location Projected Generating Capacity (MW) Status Projected Commercial Operation May Qualify for ITC Cash Grant 1 Wister - Phase I California 30 3D seismic survey is conducted as part of our joint exploration program with the DOE. Drilling to start during Q / Mammoth - Phase II California 25 Expect to commence commercial drilling during Q Mammoth Enhancement California 7* Modernization and replacement of existing equipment Olkaria III Expansion - Phase 3 Kenya 36 Signed Letter of Intent with KPLC 2013 NA 5 Sarulla Indonesia 42** Consortium executed an agreement re amendments to the Energy Sales Contract. Signing is expected in the next three month 6 PV Solar installations Israel 38*** Have the rights for the development of eight projects. In some sites we have already started permitting process. TBD TBD NA NA Total 178 MW 3 projects *Ormat will replace the existing 29 MW complex with 36 MW of new and modernized equipment **Ormat owns 12.75% interest in the Sarulla consortium. The 330 MW net to be constructed in three phases over five years ***Ormat will own 70% GREEN ENERGY you can on 32

34 Appendix Table A-3: Reconciliation of Adjusted EBITDA (in thousands of USD) Three Months Ended June 30, Six Months Ended June 30, (in thousands) (in thousands) Net cash provided by operating activities $ 10,694 $ 12,798 $ 58,934 $ 55,332 Adjusted for: Interest expense, net (excluding amortization of deferred financing costs) 8,754 3,736 17,775 6,127 Interest income Income tax provision -3,935 4,478-3,916 7,967 Adjustments to reconcile net income to net cash provided by operating activities (excluding depreciation and amortization) 7,692 18,237-18,314 6,341 EBITDA 23,110 38,973 54,187 75,339 Interest, taxes, depreciation and amortization attributable to the Company's equity in Mammoth-Pacific L.P ,912 1,823 Adjusted EBITDA $ 24,049 $ 39,807 $ 56,099 $ 77,162 Net cash used in investing activities $ (44,033) $ (67,177) $ (109,014) $ (158,402) Net cash provided by financing activities $ 44,423 $ 57,533 $ 57,968 $ 114,519 We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate adjusted EBITDA to include depreciation and amortization, interest and taxes attributable to our equity investments in the Mammoth complex. EBITDA and adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States of America and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with accounting principles generally accepted in the United States of America. EBITDA and adjusted EBITDA are presented because we believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of a Company s ability to service and/or incur debt. However, other companies in our industry may calculate EBITDA and adjusted EBITDA differently than we do. The following table reconciles net cash provided by operating activities to EBITDA and adjusted EBITDA, for the three-month periods ended March , and 2009: GREEN ENERGY you can on 33

35 Appendix Table A-3: Reconciliation of Adjusted EBITDA (in thousands of USD) We previously calculated EBITDA to exclude equity income of investees and other non-operating expense (income) and adjusted EBITDA to exclude other nonoperating expense (income). In addition, we now reconcile EBITDA and adjusted EBITDA to our net cash provided by operating activities for each of the periods shown, rather than net income amounts we have used for reconciliation in prior periods. Accordingly, the information in the tables below is not directly comparable to similar reconciliation information we have reported for prior periods not reflected in the tables below. The change in the way we now calculate EBITDA and adjusted EBITDA results in higher EBITDA and adjusted EBITDA for each of the periods shown above than we would have reported using our prior method for calculating EBITDA and adjusted EBITDA. The following table shows, for each period reported above, the differences in our reported EBITDA and adjusted EBITDA resulting from the change in our method for computing these amounts. Three Months Ended June 30, (in thousands) Six Months Ended June 30, (in thousands) EBITDA, as previously calculated $ 18,939 $ 30,257 $ 43,476 $ 64,615 Adjusted for inclusion: Equity in income of investees , Other non-operating inc ome (expense) 3,692 8,361 9, 686 9, 819 EBITDA, as currently calculated $ 23,110 $ 38,973 $ 54,187 $ 75,339 Adjusted EBITDA, as previously calculated $ 20,357 $ 31,446 $ 46,413 $ 67,343 Adjusted for inclusion - Other non-operating inc ome (expense) 3,692 8,361 9, 686 9, 819 Adjusted EBITDA, as currently calculated $ 24,049 $ 39,807 $ 56,099 $ 77,162 This comparative non-gaap information is provided to assist investors in evaluating the impact of the change in the way we calculate these amounts in performing their financial analysis of our operations for the periods presented. This information should not be considered in isolation or as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP or other non-gaap financial measures. GREEN ENERGY you can on 34