ORMAT TECHNOLOGIES, INC. — Earnings Release 2016

May 5, 2016

PRESS RELEASE

Smadar Lavi Rob Fink/Brett Maas Investor Relations Hayden - IR 775-356-9029 (ext. 65726) 646-415-8972/646-536-7331

Ormat Technologies Contact: Investor Relations Agency Contact: slavi@ormat.com rob@haydenir.com / brett@haydenir.com

Ormat Technologies Reports First Quarter Revenue of \$151.6 Million and Adjusted EBITDA of \$80.2 Million

Strong Gross Margin Increases Net income and Adjusted EBITDA

RENO, Nev. May 4, 2016 - Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the first quarter ended March 31, 2016.

First Quarter Highlights and Recent Developments:

• Total revenues of \$151.6 million, up 26.1% compared to the first quarter of 2015;
• Product segment revenues of \$43.7 million, up 44.4% compared to the first quarter of 2015;
• Electricity segment revenues of \$107.9 million, up 19.9% compared to the first quarter of 2015;
• Electricity generation increased 16.4% to 1.4 million MWh;
• Gross margin increased to 42.1% of total revenues compared to 36.6% in the first quarter of 2015;
• Operating income grew 69.3% to \$50.5 million compared to \$29.9 million in the first quarter of 2015;
• Adjusted EBITDA of \$80.2 million, up 22.8% compared to \$65.3 million in the first quarter of 2015;
• Net income attributable to the company's shareholders of \$29.3 million, or \$0.59 per diluted share, compared to \$10.0 million, or \$0.21 per diluted share, in the first quarter of 2015;
• Declared a quarterly dividend of \$0.07 per share for the first quarter of 2016;
• Signed definitive agreements to acquire geothermal power plant in the Island of Guadeloupe; and
• Signed an agreement to jointly build, own, and operate the Rabbit Hill Energy Storage Project located in Georgetown, Texas which moves us for the first time into the energy storage arena.

"This was a strong start to 2016, as our focus on manufacturing and operational efficiency drove both top-line growth and margin expansion, enabling us to deliver a 22.8% increase in Adjusted EBITDA and a 191.8% increase in net income compared to the first quarter last year," noted Isaac Angel, Chief Executive Officer. "We expect our gross margins in the products segment during 2016 to be higher than normal, thanks to lower commodity prices, the contribution of several large contracts, and higher revenue contribution. Gross margins should normalize in 2017. In the electricity segment, the contribution of second phase at our McGinness Hills and Don A. Campbell plants as well as the fourth plant at Olkaria are driving margin expansion, as additional capacity typically operates at higher gross margins due to more efficient utilization of infrastructure and related personnel expenses. Overall, our diversified revenue streams, and our methodical focus on operational excellence is enabling us to overcome challenges related to lower oil and natural gas prices and we were able to deliver strong and improving results."

"In our electricity segment, we continue to expect to add 160 to 190 megawatts of capacity by the end of 2018," continued Mr. Angel. "We will achieve this by bringing new plants online, expanding existing plants and adding capacity from our acquisition of a geothermal power plant in the Island of Guadeloupe in the Caribbean". During the quarter, we also made our first announcement related to one of the key component in our long-term strategic goals. We signed an agreement to jointly build, own, and operate with Alevo, an energy storage project in Georgetown, Texas. Entering the energy storage market will advance our goals of transitioning from a geothermal company to a recognized leader in the renewable energy industry".

Guidance

Mr. Angel added, "We reiterate our guidance and expect full-year 2016 total revenue of between \$620 million and \$640 million with product segment revenue of between \$210 million and \$220 million. For the electricity segment, we expect revenues to be between \$410 million and \$420 million. We expect 2016 Adjusted EBITDA of \$300 to \$310 million for the full year. We expect annual Adjusted EBITDA attributable to minority's interest to be approximately \$17 million. This amount assumes the inclusion of the second phase of the Don A. Campbell power plant in the joint venture with Northleaf."

Financial Summary

First Quarter Results

For the three months ended March 31, 2016, total revenues were \$151.6 million, up from \$120.2 million in the first quarter of 2015, an increase of 26.1%. Electricity revenues increased 19.9% to \$107.9 million in the three months ended March 31, 2016, up from \$90.0 million in the three months ended March 31, 2015. Product revenues increased 44.4% to \$43.7 million in the three months ended March 31, 2016, up from \$30.3 million in the three months ended March 31, 2015.

The company reported net income attributable to the company's shareholders of \$29.3 million, or \$0.59 per diluted share, compared to net income attributable to the company's shareholders of \$10.0 million, or \$0.21 per diluted share, for the same period last year.

Adjusted EBITDA for the three months ended March 31, 2016 was \$80.2 million, compared to \$65.3 million for the three months ended March 31, 2015, an increase of 22.8%. The reconciliation of GAAP net cash provided by (used in) operating activities and net income to EBITDA and Adjusted EBITDA and additional cash flows information is set forth below in this release.

On May 4, 2016, ORMAT's Board of Directors approved a payment of a quarterly dividend of \$0.07 per share pursuant to the company's dividend policy. The dividend will be paid on May 24, 2016 to shareholders of record as of closing of business on May 18, 2016. In addition, the company expects to pay quarterly dividends of \$0.07 per share in the next two quarters.

Conference Call Details

Ormat will host a conference call to discuss its financial results and other matters discussed in this press release at 10 a.m. ET on Wednesday, May 5, 2016. The call will be available as a live, listen-only webcast at investor.ormat.com. During the webcast, management will refer to slides that will be posted on the website. The slides and accompanying webcast can be accessed through the Events & Presentations in the Investor Relations section of Ormat's website.

An archive of the webcast will be available approximately 30 minutes after the conclusion of the live call.

Please ask to be joined into the Ormat Technologies, Inc. call.

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About Ormat Technologies

With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (REG), with the objective of becoming a leading global provider of renewable energy. 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. With 72 U.S. patents, Ormat's power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 450 employees in the United States and over 600 overseas. Ormat's flexible, modular solutions for geothermal power and REG are ideal for the vast range of resource characteristics. The company has engineered, manufactured and constructed power plants, which it currently owns or has installed to utilities and developers worldwide, totaling over 2,000 MW of gross capacity. Ormat's current 697 MW generating portfolio is spread globally in the U.S., Guatemala and Kenya.

Ormat's Safe Harbor Statement

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 26, 2016.

These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise

Ormat Technologies, Inc. and Subsidiaries

Ormat Technologies, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations For the Three-Month Periods Ended March 31, 2016 and 2015 (Unaudited)

	Three Months Ended March 31
		2016		2015
		(In thousands, except per
			share data)
Revenues:
Electricity \$		107,868	\$	89,953
Product		43,726		30,278
Total revenues		151,594		120,231
Cost of revenues:
Electricity		63,686		55,581
Product		24,035		20,625
Total cost of revenues		87,721		76,206
Gross margin		63,873		44,025
Operating expenses:
Research and development expenses		349		363
Selling and marketing expenses		3,675		3,433
General and administrative expenses		8,749		10,204
Write-off of unsuccessful exploration activities		557		174
Operating income		50,543		29,851
Other income (expense):
Interest income		320		9
Interest expense, net		(16,023)		(17,828)
Foreign currency translation and transaction gains (losses)		1,962		(1,366)
Income attributable to sale of tax benefits		4,398		5,552
Other non-operating expense, net		191		283
Income before income taxes and equity in
losses of investees		41,391		16,501
Income tax provision (benefit)		(9,509)		(5,459)
Equity in losses of investees, net		(937)		(775)
Net income		30,945		10,267
Net income attributable to noncontrolling interest		(1,674)		(235)
Net income attributable to the Company's stockholders \$		29,271	\$	10,032
Earnings per share attributable to the Company's stockholders - Basic and diluted: Basic:
Net Income	\$	0.60	\$	0.21
Diluted:
Net Income	\$	0.59	\$	0.21
Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:
Basic		49,173		47,244
Diluted		49,782		48,079

Ormat Technologies, Inc. and Subsidiaries Condensed Consolidated Balance Sheets As of March 31, 2016 and December 31, 2015

	March 31,	December 31,
	2016		2015
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	\$ 148,498	\$	185,919
Restricted cash, cash equivalents and marketable securities	64,129		49,503
Receivables:
Trade	76,465		55,301
Other	8,646		7,885
Inventories	16,795		18,074
Costs and estimated earnings in excess of billings on uncompleted contracts	29,897		25,120
Prepaid expenses and other	35,135		33,334
Total current assets	379,565		375,136
Deposits and other	17,415		17,968
Deferred charges	42,613		42,811
Property, plant and equipment, net	1,570,074		1,559,335
Construction-in-process	220,981		248,835
Deferred financing and lease costs, net	4,430		4,022
Intangible assets, net	25,056		25,875
Total assets	\$ 2,260,13 4	\$	2,273,982
LIABILITIES AND EQ UITY
Current liabilities:
Accounts payable and accrued expenses	\$ 82,487	\$	91,955
Short term revolving credit lines with banks (full recourse)	9,000		—
Billings in excess of costs and estimated earnings on uncompleted contracts	30,917		33,892
Current portion of long-term debt:
Limited and non-recourse:
Senior secured notes	29,917		29,930
Other loans	21,495		21,495
Full recourse	11,229		11,229
Total current liabilities	185,045		188,501
Long-term debt, net of current portion:
Limited and non-recourse:
Senior secured notes	290,201		294,476
Other loans	270,869		275,888
Full recourse:
Senior unsecured bonds	249,665		249,698
Other loans	17,036		18,687
Unconsolidated investments	12,216		8,100
Liability associated with sale of tax benefits	6,714		11,665
Deferred lease income	57,516		58,099
Deferred income taxes	16,502		32,654
Liability for unrecognized tax benefits	10,639		10,385
Liabilities for severance pay	19,118		19,323
Asset retirement obligation	21,262		20,856
Other long-term liabilities	5,018		1,776
Total liabilities	1,161,801		1,190,108
Equity:
The Company's stockholders' equity:
Common stock	49		49
Additional paid-in capital	854,260		849,223
Retained earnings (accumulated deficit)	162,195		148,396
Accumulated other comprehensive income (loss)	(10,849)		(7,667)
	1,005,655		990,001
Noncontrolling interest	92,678		93,873
Total equity	1,098,333		1,083,874
Total liabilities and equity	\$ 2,260,134	\$	2,273,982

(Unaudited) Ormat Technologies, Inc. and Subsidiaries Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows Information For the Three-Month Periods Ended March 31, 2016 and 2015 (Unaudited)

We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, adjusted for (i) termination fees, (ii) impairment of long-lived assets, (iii) write-off of unsuccessful exploration activities,(iv) any mark-to-market gains or losses from accounting for derivatives, (v) merger and acquisition transaction cost, (vi) stock-based compensation, (vii) gain from extinguishment of liability, and (viii) gain on sale of subsidiary and property, plant and equipment. EBITDA and Adjusted EBITDA are not a measurement 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 tables reconcile net cash provided by (used in) operating activities and net income to EBITDA and Adjusted EBITDA for the three-month periods ended March 31, 2016 and 2015.

	Three Months Ended March 31
		2016		2015
		(in thousands)
Net cash provided by operating activities	\$	27,044	\$	83,147
Adjusted for:
Interest expense, net (excluding amortization
of deferred financing costs)		14,127		15,972
Interest income		(320)		(9)
Income tax provision		9,509		5,459
Adjustments to reconcile net income or loss to net cash
provided by operating activities (excluding
depreciation and amortization)		30,082		(47,220)
EBITDA	\$	80,442	\$	57,349
Mark to market on derivative instruments which represents swap contracts on natural gas and oil prices		174		4,129
Stock-based compensation		842		1,127
Merger and acquisition transaction costs		147		3,400
Write-off of unsuccessful exploration activities		557		174
Mark to market on derivatives which represents currency forward contracts		(1,920)		(860)
Adjusted EBITDA	\$	80,242	\$	65,319
Net cash used in investing activities	\$	(44,620)	\$	(47,257)
Net cash used in financing activities	\$	(19,845)	\$	(5,396)

	Three Months Ended March 31
	2016		2015
	(in thousands)
Net income	\$ 30,945	\$	10,267
Adjusted for:
Interest expense, net (including amortization
of deferred financing costs)	15,703		17,819
Income tax provision	9,509		5,459
Depreciation and amortization	24,285		23,804
EBITDA	\$ 80,442	\$	57,349
Mark to market on derivative instruments which represents swap contracts on natural gas and oil prices	174		4,129
Stock-based compensation	842		1,127
Merger and acquisition transaction costs	147		3,400
Write-off of unsuccessful exploration activities	557		174
Mark to market on derivatives which represents currency forward contracts	(1,920)		(860)
Adjusted EBITDA	\$ 80,242	\$	65,319