Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE

1

— GENERAL AND BASIS OF PRESENTATION

These unaudited condensed consolidated interim financial statements of Ormat Technologies, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Accordingly, they do

not

contain all information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s consolidated financial position as of

June 30, 2017,

the consolidated results of operations and comprehensive income (loss) for the

three

and

six

months ended

June 30, 2017

and

2016

and the consolidated cash flows for the

six

months ended

June 30, 2017

and

2016.

The financial data and other information disclosed in the notes to the condensed consolidated financial statements related to these periods are unaudited. The results for the

three

and

six

months ended

June 30, 2017

are

not

necessarily indicative of the results to be expected for the year ending

December

31,

2017.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form

10

-K for the year ended

December

31,

2016.

The condensed consolidated balance sheet data as of

December

31,

2016

was derived from the Company’s audited consolidated financial statements for the year ended

December

31,

2016,

but does

not

include all disclosures required by U.S. GAAP. As discussed in the Explanatory Note to this amended Form

10

-Q, the

2016

financial statements will be revised, which revision is being effected through the Company’s filing of an amendment on Form

10

-K/A for the year ended

December 31, 2017.

Dollar amounts, except per share data, in the notes to these financial statements are rounded to the closest

$1,000.

Restatement of p

r

eviously is

s

u

e

d

condensed consolidated

financ

i

a

l statements

As described further in Note

11,

in the

second

quarter of

2017,

the Company partially released its valuation allowance against the U.S. deferred tax assets. During the

first

quarter of

2018,

the Company concluded that there were material tax provision and related balance sheet errors in its previously issued financial statements as of and for the

three

and

six

months ended

June 30, 2017,

primarily relating to the Company’s ability to utilize Federal tax credits in the U.S. prior to their expiration starting in

2027,

and the resulting impact on the Company’s deferred tax asset valuation allowance. Specifically, the error in the deferred tax asset valuation allowance resulted in an understatement of the income tax provision and an overstatement of net income of

$26.4

million and

$26.5

million for the

three

and

six

months ended

June 30, 2017,

respectively. As a result of such errors, the Company concluded that the previously issued unaudited condensed consolidated financial statements as of and for the

three

and

six

months ended

June 30, 2017

were materially misstated, and, accordingly, has restated these financial statements. Included in such restatement is also the correction of other immaterial tax errors, including an out-of-period adjustment that had been previously recorded for the correction of an understated liability for unrecognized tax benefits related to intercompany interest.

Revis

i

on

of p

r

eviously is

s

u

e

d

condensed consolidated

financ

i

a

l statements

The Company had previously identified certain other tax errors, including a prior period error related to the translation of deferred tax liabilities in the Company’s Kenyan subsidiary and an error in the effective tax rate calculation in the

first

quarter of

2016,

which were previously determined to be immaterial and were previously corrected for as out-of-period adjustments in the period of identification.

The Company assessed the materiality of these errors in accordance with the SEC’s Staff Accounting Bulletin (“SAB”) Topic

1.M,

Materiality, codified in ASC Topic

250,

Presentation of Financial Statements (“ASC

250”

), and concluded that the previously issued unaudited condensed consolidated interim financial statements for the

three

months ended

March 31, 2017

and

2016

and the

three

and

six

months ended

June 30, 2016

were

not

materially misstated; however, in order to correctly reflect the immaterial adjustments as described above in the appropriate period, management has elected to revise the affected previously issued financial statements in this Form

10

-Q/A filing. As a result, the revised condensed consolidated financial statements for the

three

and

six

months ended

June 30, 2016

reflect a

$0.6

million and

$0.2

million increase, respectively, in the tax provision, with a corresponding decrease in net income and comprehensive income. In addition, the revised condensed consolidated financial statements for the

three

months ended

March 31, 2017

and

2016

reflect a

$0.1

million increase and a

$0.4

million decrease, respectively, in the tax provision, with a corresponding impact to net income and comprehensive income. The impact of the revision as of

January 1

and

December 31, 2016

was an increase of

$3.9

million and decrease of

$1.3

million, respectively, to retained earnings, as a result of certain tax errors originating in periods prior to

2016,

primarily related to the error in the determination of the exchange rate used in the translation of deferred tax liabilities in the Company’s Kenyan subsidiary.

The effects of the

2017

restatement and the

2016

revision on the line items within the Company's condensed consolidated balance sheets as of

June 30, 2017

and

December 31, 2016

are as follows (in thousands):

	June 30, 2017									December 31, 2016
	As originally reported			Adjustments			As Restated			As originally reported			Adjustments			As Revised
Deferred income tax liabilities	$	44,113		$	28,198		$	72,311		$	35,382		$	1,029		$	36,411
Liability for unrecognized tax benefits		6,015			-			6,015			5,738			706			6,444
Total liabilities		1,277,136			28,198			1,305,334			1,286,790			1,735			1,288,525
Retained earnings		274,566			(27,806	)		246,760			216,644			(1,292	)		215,352
Accumulated other comprehensive loss		(6,933	)		(392	)		(7,325	)		(7,732	)		(443	)		(8,175	)
Total stockholders’ equity attributable to the Company’s stockholders		1,143,274			(28,198	)		1,115,076			1,078,425			(1,735	)		1,076,690
Total equity		1,227,599			(28,198	)		1,199,401			1,170,007			(1,735	)		1,168,272

The effects of the

2017

restatement and

2016

revision on the line items within the Company's condensed consolidated statements of operations and comprehensive income for the

three

and

six

months ended

June 30, 2017

and

2016

are as follows (in thousands):

	Three months ended June 30, 2017									Six months ended June 30, 2017
	As originally reported			Adjustments			As Restated			As originally reported			Adjustments			As Restated
Income tax provision	$	(6,369	)	$	(26,396	)	$	(32,765	)	$	(17,255	)	$	(26,514	)	$	(43,769	)
Income from continuing operations		38,242			(26,396	)		11,846			77,977			(26,514	)		51,463
Net income attributable to the Company’s stockholders		35,036			(26,396	)		8,640			70,348			(26,514	)		43,834
Loss in respect of derivative instruments designated for cash flow hedge		20			25			45			42			51			93
Comprehensive income		38,792			(26,371	)		12,421			79,172			(26,463	)		52,709
Comprehensive income attributable to the Company’s stockholders		35,179			(26,371	)		8,808			71,147			(26,463	)		44,684
Net income per share attributable to the Company’s stockholders
Basic:	$	0.70		$	(0.53	)	$	0.17		$	1.41		$	(0.53	)	$	0.88
Diluted:	$	0.69		$	(0.52	)	$	0.17		$	1.39		$	(0.52	)	$	0.87

	Three months ended June 30, 2016									Six months ended June 30, 2016
	As originally reported			Adjustments			As Revised			As originally reported			Adjustments			As Revised
Income tax provision	$	(7,890	)	$	(625	)	$	(8,515	)	$	(17,399	)	$	(195	)	$	(17,594	)
Income from continuing operations		24,933			(625	)		24,308			55,878			(195	)		55,683
Net income attributable to the Company’s stockholders		24,349			(625	)		23,724			53,620			(195	)		53,425
Loss in respect of derivative instruments designated for cash flow hedge		22			13			35			43			27			70
Comprehensive income		22,944			(612	)		22,332			50,707			(168	)		50,539
Comprehensive income attributable to the Company’s stockholders		22,360			(612	)		21,748			48,449			(168	)		48,281
Net income per share attributable to the Company’s stockholders
Basic:	$	0.49		$	(0.01	)	$	0.48		$	1.09		$	(0.01	)	$	1.08
Diluted:	$	0.49		$	(0.02	)	$	0.47		$	1.07		$	-		$	1.07

The effects of the

2017

restatement and

2016

revision on the line items within the Company’s condensed consolidated statements of equity for the

six

months ended

June 30, 2017

and

2016

are as follows (in thousands):

	As originally reported			Adjustments			As Revised
Balances as of December 31, 2015:
Retained earnings	$	148,396		$	3,930		$	152,326
Accumulated other comprehensive loss		(7,667	)		(497	)		(8,164	)
Total stockholders’ equity attributable to the Company’s stockholders		990,001			3,433			993,434
Total equity		1,083,874			3,433			1,087,307
Net income for the six months ended June 30, 2016		55,878			(195	)		55,683
Net income attributable to the Company’s stockholders for the six months ended June 30, 2016		53,620			(195	)		53,425
Loss in respect of derivative instruments designated for cash flow hedge for the six months ended June 30, 2016		43			27			70
Balances as of June 30, 2016:
Retained earnings		183,018			3,735			186,753
Accumulated other comprehensive loss		(12,838	)		(470	)		(13,308	)
Total stockholders’ equity attributable to the Company’s stockholders		1,027,056			3,265			1,030,321
Total equity		1,117,435			3,265			1,120,700

	As originally reported			Adjustments			As Restated
Balances as of December 31, 2016:
Retained earnings	$	216,644		$	(1,292	)	$	215,352
Accumulated other comprehensive loss		(7,732	)		(443	)		(8,175	)
Total stockholders’ equity attributable to the Company stockholders		1,078,425			(1,735	)		1,076,690
Total equity		1,170,007			(1,735	)		1,168,272
Net income for the six months ended June 30, 2017		77,289			(26,514	)		50,775
Net income attributable to the Company’s stockholders for the six months ended June 30, 2017		70,348			(26,514	)		43,834
Loss in respect of derivative instruments designated for cash flow hedge for the six months ended June 30, 2017		42			51			93
Balances as of June 30, 2017:
Retained earnings		274,566			(27,806	)		246,760
Accumulated other comprehensive loss		(6,933	)		(392	)		(7,325	)
Total stockholders’ equity attributable to the Company’s stockholders		1,143,274			(28,198	)		1,115,076
Total equity		1,227,599			(28,198	)		1,199,401

Although there was

no

impact to net cash provided by operating activities, net cash used in investing activities or net cash used in financing activities, the effects of the

2017

restatement and the

2016

revision on the line items within the condensed consolidated statements of cash flows for the

six

months ended

June 30, 2017

and

2016

are as follows (in thousands):

	Six months ended June 30, 2017							Six months ended June 30, 2016
	As previously reported		Adjustments			As Restated		As previously reported			Adjustments			As Revised
Cash flows from operating activities:
Net income	$	77,977	$	(26,514	)	$	51,463	$	55,878		$	(195	)	$	55,683
Deferred income tax provision		8,375		26,396			34,771		13,254			-			13,254
Liability for unrecognized tax benefits		277		118			395		(411	)		195			(216	)
Net cash provided by operating activities		114,158		-			114,158		119,573			-			119,573

The impacts of the restatement and revision have been reflected throughout the financial statements, including the applicable footnotes, as appropriate. This resulted in changes to the deferred tax balances, valuation allowance and effective tax rate, together with other disclosures in Note

11.

SCPPA power purchase agreement

During the

second

quarter of

2017,

ONGP LLC (“ONGP”),

one

of the Company’s wholly-owned subsidiaries, entered into a Power Purchase Agreement (“PPA”) with Southern California Public Power Authority (“SCPPA”), pursuant to which ONGP will sell, and SCPPA will purchase, geothermal power generated by a portfolio of

nine

different geothermal power plants, owned by the Company and located in the US. The parties’ obligations under the PPA are based on a geothermal power generation capacity of

150

MW, and, pursuant to the PPA, ONGP is required to deliver a minimum of

135

MW and is entitled to deliver a maximum of

185

MW to SCPPA over the next

five

years. The portfolio PPA is for a term of approximately

26

years, expiring in

December 31, 2043

and has a fixed price of

$75.50

per MWh.

Assertion of permanent reinvestment of foreign unremitted earnings in a subsidiary

During the

second

quarter of

2017,

in conjunction with the (i) final approval of the SCPPA PPA which will require the Company to make significant capital expenditures in the U.S., (ii) the fact that the Company is currently looking for acquisitions in the U.S., and (iii) the acquisition of Viridity for a price of

$35.3

million with

two

additional earn-out payments expected to be made in

2018

and

2021,

the Company has re-evaluated its position with respect to a portion of the unrepatriated earnings of Ormat Systems (“OSL”), its fully owned Subsidiary in Israel, and after consideration of the aforementioned change in facts, determined that it can

no

longer maintain the permanent reinvestment position with respect to a portion of OSL's unrepatriated earnings which will be repatriated to support the Company’s capital expenditures in the U.S. Accordingly, and as further described in Note

11,

the permanent reinvestment assertion of foreign unremitted earnings of OSL was reassessed and removed and the related deferred tax assets and liabilities as well as the estimated withholding taxes on expected remittance of OSL earnings to the U.S. were recorded by the Company in the

second

quarter of

2017

.

Viridity transaction

On

March 15, 2017,

the Company completed the acquisition of substantially all of the business and assets of Viridity Energy, Inc. (“VEI”), a privately held Philadelphia-based company engaged in the provision of demand response, energy management and energy storage services. At closing, Viridity Energy Solutions Inc. (“Viridity”), a wholly owned subsidiary of the Company, paid initial consideration of

$35.3

million. Additional contingent consideration with an estimated fair value of $

12.8

million will be payable in

two

installments upon the achievement of certain performance milestones measured at the end of fiscal years

2017

and

2020.

The acquired business and assets are operated by Viridity.

Using proprietary software and solutions, Viridity serves primarily retail energy providers, utilities, and large commercial and industrial customers. Viridity’s offerings enable its customers to optimize and monetize their energy management, demand response and storage facilities potential by interacting on their behalf with regional transmission organizations and independent system operators.

The Company accounted for the transaction in accordance with Accounting Standard Codification

805,

Business Combinations, and consequently recorded intangible assets of

$34.7

million primarily relating to Viridity’s storage and non-storage activities with a weighted-average amortization period of

17

years, approximately

$0.4

million of working capital and fixed assets, and

$13.9

million of goodwill. Following the transaction, the Company consolidated Viridity, in accordance with Accounting Standard Codification

810,

Consolidation. The acquisition will enable the Company to enter the growing energy storage and demand response markets and expand its market presence.

The revenues of Viridity for the period from

March 15, 2017

to

June 30, 2017

were included in the Company’s consolidated statements of operations and comprehensive income for the

three

and

six

months ended

June 30, 2017.

Accounting guidance provides that the allocation of the purchase price

may

be modified for up to

one

year from the date of the acquisition to the extent that additional information is obtained about the facts and circumstances that existed as of the acquisition date.

Other comprehensive income

For the

six

months ended

June 30, 2017

and

2016,

the Company classified

$3,000

and

$5,000,

respectively, related to derivative instruments designated as cash flow hedges, from accumulated other comprehensive income, of which

$5,000

and

$10,000,

respectively, were recorded to reduce interest expense and

$2,000

and

$5,000,

respectively, were recorded against the income tax provision, in the condensed consolidated statements of operations and comprehensive income. For the

three

months ended

June 30, 2017

and

2016,

the Company classified

$1,000

and

$2,000,

respectively, related to derivative instruments designated as cash flow hedges, from accumulated other comprehensive income, of which

$3,000

and

$6,000

respectively, was recorded to reduce interest expense and

$1,000

and

$4,000,

respectively, were recorded against the income tax provision, in the condensed consolidated statements of operations and comprehensive income. The accumulated net loss included in Other comprehensive income as of

June 30, 2017,

is

$0.6

million

Write-offs of unsuccessful exploration activities

There were

no

write-offs of unsuccessful exploration activities for the

three

and

six

months ended

June 30, 2017.

Write-offs of unsuccessful exploration activities for the

three

and

six

months ended

2016

were

$0.9

million and

$1.4

million, respectively. The write-offs of exploration costs in

2016

were related to the Company’s exploration activities in Nevada and Chile, which the Company determined would

not

support commercial operations.

Concentration of credit risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of temporary cash investments and accounts receivable.

The Company places its temporary cash investments with high credit quality financial institutions located in the United States (“U.S.”) and in foreign countries. At

June 30, 2017

and

December 31, 2016,

the Company had deposits totaling

$31.3

million and

$72.5

million, respectively, in

seven

U.S. financial institutions that were federally insured up to

$250,000

per account. At

June 30, 2017

and

December 31, 2016,

the Company’s deposits in foreign countries amounted to approximately

$99.9

million and

$166.2

million, respectively.

At

June 30, 2017

and

December 31, 2016,

accounts receivable related to operations in foreign countries amounted to approximately

$53.5

million and

$53.3

million, respectively. At

June 30, 2017

and

December 31, 2016,

accounts receivable from the Company’s primary customers amounted to approximately

55%

and

60%

of the Company’s accounts receivable, respectively.

Sierra Pacific Power Company and Nevada Power Company (subsidiaries of NV Energy, Inc.) accounted for

16.7%

and

19.1%

of the Company’s total revenues for the

three

months ended

June 30, 2017

and

2016,

respectively, and

17.8%

and

21.1%

for the

six

months ended

June 30, 2017

and

2016,

respectively.

Kenya Power and Lighting Co. Ltd. accounted for

15.4%

and

17.1%

of the Company’s total revenues for the

three

months ended

June 30, 2017

and

2016,

respectively, and

14.8%

and

17.2%

of the Company’s total revenues for the

six

months ended

June 30, 2017

and

2016,

respectively.

SCPPA accounted for

8.7%

and

10.4%

of the Company’s total revenues for the

three

months ended

June 30, 2017

and

2016,

respectively, and

8.9%

and

11.2%

of the Company’s total revenues for the

six

months ended

June 30, 2017

and

2016,

respectively.

Hyundai (Sarulla geothermal power project) accounted for

4.9%

and

8.6%

of the Company’s total revenues for the

three

months ended

June 30, 2017

and

2016,

respectively, and

6.3%

and

9.0%

for the

six

months ended

June 30, 2017

and

2016,

respectively.

The Company has historically been able to collect on all of its receivable balances, and accordingly,

no

provision for doubtful accounts has been made.

Note 2 - New Accounting Pronouncements	6 Months Ended
Note 2 - New Accounting Pronouncements	Jun. 30, 2017
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	NOTE 2 — NEW ACCOUNTING PRONOUNCEMENTS New accounting pronouncements effective in the six months ended June 30, 2017 Improvement to Employee Share-Based Payment Accounting In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016 - 09, Improvement to Employee Share-Based Payment Accounting, an update to the guidance on stock-based compensation. Under the new guidance, all excess tax benefits and tax deficiencies will be recognized in the income statement as they occur. This will replaced previous guidance, which required tax benefits that exceed compensation cost (windfalls) to be recognized in equity. It also eliminated the need to maintain a “windfall pool,” and removed the requirement to delay recognizing a windfall until it reduces current taxes payable. The new guidance also changed the cash flow presentation of excess tax benefits, classifying them as operating inflows, consistent with other cash flows related to income taxes. Previously, windfalls were classified as financing activities. This guidance affects the dilutive effects in earnings per share, as there will no longer be excess tax benefits recognized in additional paid in capital. Previously those excess tax benefits were included in assumed proceeds from applying the treasury stock method when computing diluted EPS. Under the amended guidance, companies are able to make an accounting policy election to either ( 1 ) continue to estimate forfeitures or ( 2 ) account for forfeitures as they occur. This updated guidance is effective for annual and interim periods beginning after December 15, 2016. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Interests Held through Related Parties that are under Common Control In October 2016, the FASB issued ASU 2016 - 17, Consolidation (Topic 810 ): Interests held through Related Parties that are under Common Control. The amendments in this update require that if a decision maker is required to evaluate whether it is the primary beneficiary of a VIE, it will need to consider only its proportionate indirect interest in the VIE held through a common control party. The amendments in this update should be applied retrospectively for each period presented and are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Simplifying the Measurement of Inventory In July 2015, the FASB issued ASU 2015 - 11, Simplifying the Measurement of Inventory, Topic 330. The update contains no amendments to disclosure requirements, but replaces the concept of ‘lower of cost or market’ with that of ‘lower of cost and net realizable value’. The amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within those reporting periods. The amendments should be applied prospectively with early adoption permitted. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. New accounting pronouncements effective in future periods Intangibles –Goodwill and Other In January 2017, the FASB issued ASU 2017 - 04, Intangibles – Goodwill and Other (Topic 350 ). The amendments in this Update require the entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider the income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. This Update, eliminated Step 2 from the goodwill impairment test under the current guidance. Step 2 measures a goodwill impairment loss by comparing the implied fair value of reporting unit’s goodwill with the carrying amount of that goodwill. The amendments in this Update should be applied on a prospective basis. An entity is also required to disclose the nature of and the reason for the change in accounting principal upon transition. That disclosure should be provided in the first annual period and the interim period within the first annual period when the entity initially adopts the amendments in this Update. The amendments in this Update are effective for the annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the potential impact of the adoption of these amendments on its consolidated financial statements. Compensation - Stock Compensation In May 2017, the FASB issued ASU 2017 - 09, Compensation—Stock Compensation (Topic 718 ). The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The amendments in this update require that an entity should account for the effects of a modification unless all of the following are met: ( 1 ) The fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; ( 2 ) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; ( 3 ) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this Update. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. The Company is currently evaluating the potential impact of the adoption of these amendments on its consolidated financial statements. Business Combinations In January 2017, the FASB issued ASU 2017 - 01, Business Combinations (Topic 805 ). The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update primarily provide a screen to determine when a set of assets and activities is not a business and by that reduces the number of transactions that need to be further evaluated. The amendments in this update should be applied prospectively and are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the potential impact of the adoption of these amendments on its consolidated financial statements. Statement of Cash Flows In November 2016, the FASB issued ASU 2016 - 18, Statement of Cash Flows (Topic 230 ) – Restricted Cash. The amendments in this update require that a statement of cash flows explain the changes during the period in total cash, cash equivalents, and the amounts generally described as restricted cash or cash equivalents. Therefore, amounts of restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this update should be applied retrospectively for each period presented and are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the potential impact of the adoption of these amendments on its consolidated financial statements. Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued ASU 2016 - 16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. The amendments in this update require that the entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. The new guidance does not apply to intra-entity transfers on inventory. The amendments in this update should be applied for each period presented and are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The modified retrospective approach will be required for transition to the new guidance, with cumulative-effect adjustment recorded in retained earnings as of the beginning of the period of adoption. Early adoption is permitted in the first quarter of 2017. The Company is currently evaluating the potential impact of the adoption of these amendments on its consolidated financial statements. Revenues from Contracts with Customers In May 2014, the FASB issued ASU 2014 - 09, Revenues from Contracts with Customers, Topic 606, which was a joint project of the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The update provides that an entity should recognize revenue in connection with the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, an entity is required to apply each of the following steps: ( 1 ) identify the contract(s) with the customer; ( 2 ) identify the performance obligations in the contracts; ( 3 ) determine the transaction price; ( 4 ) allocate the transaction price to the performance obligation in the contract; and ( 5 ) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014 - 09 also prescribes additional financial presentations and disclosures. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within those reporting periods. Early adoption is permitted no earlier than 2017 for calendar fiscal year entities. The Company expects the adoption of this standard to have an immaterial impact, if any, on its Electricity segment as it accounts for its PPA’s under ASC 840, Leases. The Company is still evaluating the potential impact of the adoption of the standard on its Product segment, however, it believes that such impact, if any, will be immaterial. In March 2016, the FASB issued ASU 2016 - 08, Principal versus Agent Considerations. This update does not change the core principles of the guidance and is intended to clarify the implementation guidance on principal versus agent considerations. When another entity is involved in providing goods or services to a customer, an entity is required to determine if the nature of its promise is to provide the specific good or service itself (that is, the entity is a principal) or to arrange for that good or service to be provided by the other party (that is, the entity is an agent). The guidance includes indicators to assist an entity in determining whether it acts as a principal or agent in a specified transaction. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within those reporting periods. Early adoption is permitted no earlier than 2017 for calendar fiscal year entities. The Company is currently evaluating the potential impact, if any, of the adoption of these amendments on its consolidated financial statements, however, it believes that any such impact, if any, will be immaterial. Leases In February 2016, the FASB issued ASU 2016 - 02, Leases, Topic 842. This update introduces a number of changes and simplifies previous guidance, primarily the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. The Update retains the distinction between finance leases and operating leases and the classification criteria between the two types remains substantially similar. Also, lessor accounting remains largely unchanged from previous guidance. However, key aspects of the Update were aligned with the revenue recognition guidance in Topic 606. Additionally, the Update defines a lease as a contract, or part of a contract, that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of the identified asset means that the customer has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. The amendments in this update are effective for annual reporting periods beginning after December 15, 2018, including interim periods within those reporting periods. Early adoption is permitted. The Company is currently evaluating the potential impact, if any, of the adoption of these amendments on its consolidated financial statements. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016 - 01, Recognition and Measurement of Financial Assets and Financial Liabilities. The update primarily requires that an entity present separately, in other comprehensive income, the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk if the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The application of this update should be by means of cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted as of the beginning of the fiscal year of adoption. The Company is currently evaluating the potential impact, if any, of the adoption of this update on its consolidated financial statements.

Note 3 - Inventories

6 Months Ended

Jun. 30, 2017

Inventory Disclosure [Text Block]

NOTE

3

— INVENTORIES

Inventories consist of the following:

	June 30,		December 31,
	2017		2016
	(Dollars in thousands)
Raw materials and purchased parts for assembly	$	11,486	$	5,429
Self-manufactured assembly parts and finished products		7,083		6,571
Total	$	18,569	$	12,000

Note 4 - Unconsolidated Investments

6 Months Ended

Jun. 30, 2017

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE

4

— UNCONSOLIDATED INVESTMENTS

Unconsolidated investments consist of the following:

	June 30,		December 31,
	2017		2016
	(Dollars in thousands)
Sarulla	$	13,957	$	(11,081	)

The Sarulla Project

The Company holds a

12.75%

equity interest in a consortium which is in the process of developing the Sarulla geothermal power project in Indonesia with an expected generating capacity of approximately

330

MW. The Sarulla project is located in Tapanuli Utara, North Sumatra, Indonesia and is owned and operated by the consortium members under the framework of a Joint Operating Contract (“JOC”) and Energy Sales Contract (“ESC”) that were both signed on

April 4, 2013.

Under the JOC, PT Pertamina Geothermal Energy (“PGE”), the concession holder for the project, has provided the consortium with the right to use the geothermal field, and under the ESC, PT PLN, the state electric utility, is the off-taker at Sarulla for a period of

30

years. In addition to its equity interest in the consortium, the Company designed the Sarulla power plant and supplies its Ormat Energy Converters (“OECs”) to the power plant pursuant to a supply agreement (the “Supply Agreement”) that was signed in

October 2013,

as further described below.

The project is being constructed in

three

phases of approximately

110

MW each, utilizing both steam and brine extracted from the geothermal field to increase the power plant’s efficiency. The

first

phase of the power plant commenced commercial operation on

March 17, 2017

and is performing well, demonstrating its ability to produce geothermal power in excess of its design capacity. Construction of the

second

phase of the power plant is nearing completion and site pre-commissioning activities have commenced. The Company expects that the

second

phase of the power plant will commence geothermal power production within

three

months. Formal testing and commercial operation under the PPA is expected to occur in the

fourth

quarter of

2017.

Engineering, procurement and construction work for the

third

phase of the power plant is in progress and most of the equipment manufactured by the Company for the

third

phase of the power plant has already been delivered. The Company has achieved all of its contractual milestones under the Supply Agreement. Drilling for the

second

and

third

phases of the power plant is ongoing and the project has achieved to date, based on preliminary estimates,

100%

of the required injection capacity and approximately

90%

of the required production capacity.

On

May 16, 2014,

the consortium closed

$1.17

billion in financing for the development of the Sarulla project with a consortium of lenders comprised of Japan Bank for International Cooperation (“JBIC”), the Asian Development Bank and

six

commercial banks and obtained construction and term loans on a limited recourse basis backed by a political risk guarantee from JBIC. Of the

$1.17

billion,

$0.1

billion (which was drawn down by the Sarulla project company on

May 23, 2014)

bears interest at a fixed rate and

$1.07

billion bears interest at a rate linked to LIBOR. The project has missed several milestones under the financing documents, but, in each case, has either already received, or expects to receive in the near future, waivers from the lenders. The project experienced delays in field development and cost overruns resulting from delays and excess drilling costs. Due to the cost overruns in drilling, the lenders

may

request that the project sponsors contribute additional equity to the project.

The Sarulla consortium entered into interest rate swap agreements with various international banks, effective as of

June 4, 2014,

in order to fix the interest rate linked to LIBOR on up to

$0.96

billion of the

$1.07

billion portion of the financing arrangement subject to such interest rate at

3.4565%.

The Sarulla project company accounted for the interest rate swap as a cash flow hedge upon which changes in the fair value of the hedging instrument, relative to the effective portion, are recorded in other comprehensive income. During the

three

and

six

months ended

June 30, 2017,

the Sarulla project company recorded losses of

$7.2

million and

$2.7

million, respectively, net of deferred tax, of which the Company’s share was

$0.9

million and

$0.3

million, respectively. The Company’s share of such losses were recorded in other comprehensive income. During the

three

and

six

months ended

June 30, 2016,

the Sarulla project company recorded losses of

$15.6

million and

$40.5

million, respectively, net of deferred tax, of which the Company’s share was

$2.0

million and

$5.2

million, respectively. The Company’s share of such losses were recorded in other comprehensive income. The related accumulated loss recorded by the Company in other comprehensive income (loss) as of

June 30, 2017

is

$6.3

million.

The Company had added the

$255.6

million Supply Agreement to its Product segment backlog in

2014.

The Company started to recognize revenue from the project during the

third

quarter of

2014

and will complete the recognition revenue over the course of the year. The Company has eliminated the related intercompany profit of

$14.1

million against equity in loss of investees.

During the

three

and

six

months ended

June 30, 2017,

the Company made additional equity investments in the Sarulla project of approximately

$12.5

million and

$27.4

million, respectively, and

$39.3

million since inception.

Note 5 - Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Text Block]

NOTE

5—

FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value measurement guidance clarifies that fair value is an exit price, representing the amount that would be received upon selling an asset or paid upon transferring a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level

1

measurements) and the lowest priority to unobservable inputs (Level

3

measurements). The

three

levels of the fair value hierarchy under the fair value measurement guidance are described below:

Level

1

— Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;

Level

2

— Quoted prices in markets that are

not

active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level

3

— Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or

no

market activity).

The following table sets forth certain fair value information at

June 30, 2017

and

December 31, 2016

for financial assets and liabilities measured at fair value by level within the fair value hierarchy, as well as cost or amortized cost. As required by the fair value measurement guidance, assets and liabilities are classified in their entirety based on the lowest level of inputs that is significant to the fair value measurement.

				June 30, 2017
				Fair Value
	Carrying Value at June 30, 2017			Total			Level 1		Level 2		Level 3
	(Dollars in thousands)
Assets:
Current assets:
Cash equivalents (including restricted cash accounts)	$	17,378		$	17,378		$	17,378	$	—	$	—
Derivatives:
Put options on gas price (3)		251			251			—		251		—
Contingent receivable (1)		1,088			1,088			—		—		1,088
Currency forward contracts (2)		2,007			2,007			—		2,007		—
Liabilities:
Current liabilities:
Derivatives:
Contingent payables (1)		(25,486	)		(25,486	)		—		—		(25,486	)
Warrants (1)		(3,753	)		(3,753	)		—		—		(3,753	)
Total, net	$	(8,515	)	$	(8,515	)	$	17,378	$	2,258	$	(28,151	)

				December 31, 2016
				Fair Value
	Carrying Value at December 31, 2016			Total			Level 1		Level 2			Level 3
	(Dollars in thousands)
Assets
Current assets:
Cash equivalents (including restricted cash accounts)	$	14,922		$	14,922		$	14,922	$	—		$	—
Derivatives:
Contingent receivable (1)		1,443			1,443			—		—			1,443
Liabilities:
Current liabilities:
Derivatives:
Contingent payables (1)		(11,581	)		(11,581	)		—		—			(11,581	)
Warrants (1)		(3,429	)		(3,429	)		—		—			(3,429	)
Currency forward contracts (2)		(481	)		(481	)		—		(481	)		—
Total, net	$	874		$	874		$	14,922	$	(481	)	$	(13,567	)

(

1

)

These amounts relate to contingent receivables and payables relating to the Viridity acquisition and Guadeloupe power plant purchase transaction, valued primarily based on unobservable inputs and are included within Prepaid expenses and other, Accounts payable and accrued expenses and Other long-term liabilities on

June 30, 2017

and within Prepaid expenses and other and Other long-term liabilities on

December 31, 2016

in the consolidated balance sheets with the corresponding gain or loss being recognized within Derivatives and foreign currency transaction gains (losses) in the consolidated statement of operations and comprehensive income.

(

2

)

These amounts relate to currency forward contracts valued primarily based on observable inputs, including forward and spot prices for currencies, net of contracted rates and then multiplied by notional amounts, and are included within Prepaid expenses and other and Accounts payable and accrued expenses on

June 30, 2017

and

December 31, 2016,

in the consolidated balance sheet with the corresponding gain or loss being recognized within Derivatives and foreign currency transaction gains (losses) in the consolidated statement of operations and comprehensive income.

(

3

)

These amounts relate to natural gas put options, valued primarily based on observable inputs, including spot prices on related commodity indices, and are included within Prepaid expenses and other on

June 30, 2017

in the consolidated balance sheets with the corresponding gain or loss being recognized within Derivatives and foreign currency transaction gains (losses) in the consolidated statement of operations and comprehensive income.

The amounts set forth in the tables above include investments in debt instruments and money market funds (which are included in cash equivalents). Those securities and deposits are classified within Level

1

of the fair value hierarchy because they are valued using quoted market prices in an active market.

The following table presents the amounts of gain (loss) recognized in the consolidated statements of operations and comprehensive income on derivative instruments

not

designated as hedges:

		Amount of recognized gain (loss)
Derivatives not designated as	Location of recognized gain	Three Months Ended June 30,						Six Months Ended June 30,
hedging instruments	(loss)	2017			2016			2017			2016

Put options on natural gas price	Derivatives and foreign currency transaction gains (losses)		(48	)		—			(241	)		—
Call options on natural gas price	Derivatives and foreign currency transaction gains (losses)		—			(1,664	)		—			(1,146	)
Call and put options on oil price	Derivatives and foreign currency transaction gains (losses)		—			(899	)		—			(1,542	)
Contingent considerations	Derivative and foreign currency transaction gains (losses)		(45	)		—			(95	)		—
Currency forward contracts	Derivative and foreign currency and transaction gains (losses)		1,457			(1,349	)		3,719			465
		$	1,364		$	(3,912	)	$	3,383		$	(2,223	)

In

January 2017,

the Company entered into Henry Hub Natural Gas Future contracts under which it has bought a number of put options covering a notional quantity of approximately

4.1

million British Thermal Units (“MMbtu”) with exercise prices of

$3

and expiration dates ranging from

January 26, 2017

until

November 27, 2017

in order to reduce its exposure to fluctuations in natural gas prices under its PPAs with Southern California Edison. The Company paid an aggregate amount of approximately

$0.7

million for these put options. The put option contracts have monthly expiration dates at which the options can be called and the transaction would be settled on a net cash basis.

On

February 2, 2016,

the Company entered into Henry Hub Natural Gas Future contracts under which it has written a number of call options covering a notional quantity of approximately

4.1

MMbtu with exercise prices of

$2

and expiration dates ranging from

February 24, 2016

until

December 27, 2016

in order to reduce its exposure to fluctuations in natural gas prices under its PPAs with Southern California Edison. The Company received an aggregate premium of approximately

$1.9

million from these call options. The call option contracts have monthly expiration dates on which the options can be called and the Company would have to settle its liability on a cash basis.

On

February 24, 2016,

the Company entered into Brent Oil Future contracts under which it has written a number of call options covering a notional quantity of approximately

185,000

barrels (“BBL”) of Brent with exercise prices of

$32.80

to

$35.50

and expiration dates ranging from

March 24, 2016

until

December 22, 2016

in order to reduce its exposure to fluctuations in Brent prices under its PPA with HELCO. The Company received an aggregate premium of approximately

$1.1

million from these call options. The call option contracts have monthly expiration dates on which the options can be called and the Company would have to settle its liability on a cash basis. Moreover, during

March 2016,

the Company rolled

2

existing call options covering a total notional quantity of

31,800

BBL of Brent in order to limit its exposure to

$41

to

$42.50

instead of

$32.80

to

$33.50.

In addition, the Company entered into short risk reversal transactions (sell call and buy put options) by rolling existing call options covering notional quantities of

16,500

BBL and

17,000

BBL in order to limit its exposure from the outstanding call options originally entered into in

February 2016

to between

$28.50

and

$37.50

and

$28

and

$38.50,

respectively.

The foregoing future and forward transactions were

not

designated as hedge transactions and are marked to market with the corresponding gains or losses recognized within “Derivatives and foreign currency transaction gains (losses)”.

There were

no

transfers of assets or liabilities between Level

1,

Level

2

and Level

3

during the

six

months ended

June 30, 2017.

The fair value of the Company’s long-term debt approximates its carrying amount, except for the following:

	Fair Value				Carrying Amount
	June 30, 2017		December 31, 2016		June 30, 2017		December 31, 2016
	(Dollars in millions)				(Dollars in millions)
Olkaria III Loan - DEG	$	12.5	$	16.3	$	11.8	$	15.8
Olkaria III Loan - OPIC		247.8		253.4		237.6		246.6
Olkaria IV Loan - DEG 2		51.7		50.9		50.0		50.0
Amatitlan Loan		35.1		37.3		35.0		36.8
Senior Secured Notes:
Ormat Funding Corp. ("OFC")		14.3		17.0		14.3		17.0
OrCal Geothermal Inc. ("OrCal")		33.8		37.4		32.1		35.2
OFC 2 LLC ("OFC 2")		245.1		249.0		238.9		247.2
Don A. Campbell 1 ("DAC1")		88.7		88.9		90.2		92.4
Senior Unsecured Bonds		203.3		200.1		204.3		204.3
Other long-term debt		8.9		10.4		9.7		11.2

The fair value of the OFC Senior Secured Notes is determined using observable market prices as these securities are traded. The fair value of all the other long-term debt is determined by a valuation model, which is based on a conventional discounted cash flow methodology and utilizes assumptions of current borrowing rates. The fair value of revolving lines of credit is determined using a comparison of market-based price sources that are reflective of similar credit ratings to those of the Company.

The carrying value of other financial instruments, such as revolving lines of credit, deposits, and other long-term debt approximates fair value.

The following table presents the fair value of financial instruments as of

June 30, 2017:

	Level 1		Level 2		Level 3		Total
	(Dollars in millions)
Olkaria III - DEG	$	—	$	—	$	12.5	$	12.5
Olkaria III - OPIC		—		—		247.8		247.8
Olkaria IV - DEG 2		—		—		51.7		51.7
Amatitlan Loan		—		35.1		—		35.1
Senior Secured Notes:
OFC		—		14.3		—		14.3
OrCal		—		—		33.8		33.8
OFC 2		—		—		245.1		245.1
Don A. Campbell 1 ("DAC1")		—		—		88.7		88.7
Senior Unsecured Bonds		—		—		203.3		203.3
Other long-term debt		—		1.7		7.2		8.9
Revolving lines of credit		—		30.0		—		30.0
Deposits		15.9		—		—		15.9

The following table presents the fair value of financial instruments as of

December

31,

2016:

	Level 1		Level 2		Level 3		Total
	(Dollars in millions)
Olkaria III Loan - DEG	$	—	$	—	$	16.3	$	16.3
Olkaria III Loan - OPIC		—		—		253.4		253.4
Olkaria IV - DEG 2						50.9		50.9
Amatitlan Loan		—		37.3		—		37.3
Senior Secured Notes:
OFC		—		17.0		—		17.0
OrCal		—		—		37.4		37.4
OFC 2		—		—		249.0		249.0
Don A. Campbell 1 ("DAC1")		—		—		88.9		88.9
Senior Unsecured Bonds		—		—		200.1		200.1
Other long-term debt		—		3.3		7.1		10.4
Deposits		14.4		—		—		14.4

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Note 6 - Stock-based Compensation	6 Months Ended
Note 6 - Stock-based Compensation	Jun. 30, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 6 — STOCK-BASED COMPENSATION The 2004 Incentive Compensation Plan In 2004, the Company’s Board of Directors (the “Board”) adopted the 2004 Incentive Compensation Plan ( “2004 Incentive Plan”), which provided for the grant of the following types of awards: incentive stock options, non-qualified stock options, restricted stock, stock appreciation rights (“SARs”), stock units, performance awards, phantom stock, incentive bonuses, and other possible related dividend equivalents to employees of the Company, directors and independent contractors. Under the 2004 Incentive Plan, a total of 3,750,000 shares of the Company’s common stock were reserved for issuance, all of which could be issued as options or as other forms of awards. Options and SARs granted to employees under the 2004 Incentive Plan cliff vest and are exercisable from the grant date as follows: 25% after 24 months, 25% after 36 months, and the remaining 50% after 48 months. Options granted to non-employee directors under the 2004 Incentive Plan cliff vest and are exercisable one year after the grant date. Vested stock-based awards may be exercised for up to ten years from the grant date. The shares of common stock issued in respect of awards under the 2004 Incentive Plan are issued from the Company’s authorized share capital upon exercise of options or SARs. The 2004 Incentive Plan expired in May 2012 upon adoption of the 2012 Incentive Compensation Plan ( “2012 Incentive Plan”), except as to stock-based awards outstanding under the 2004 Incentive Plan on that date. The 2012 Incentive Compensation Plan In May 2012, the Company’s shareholders adopted the 2012 Incentive Plan, which provides for the grant of the following types of awards: incentive stock options, non-qualified stock options, restricted stock, SARs, stock units, performance awards, phantom stock, incentive bonuses, and other possible related dividend equivalents to employees of the Company, directors and independent contractors. Under the 2012 Incentive Plan, a total of 4,000,000 shares of the Company’s common stock have been reserved for issuance, all of which could be issued as options or as other forms of awards. Options and SARs granted to employees under the 2012 Incentive Plan typically vest and become exercisable as follows: 25% vest 24 months after the grant date, an additional 25% vest 36 months after the grant date, and the remaining 50% vest 48 months after the grant date. Options granted to non-employee directors under the 2012 Incentive Plan will vest and become exercisable one year after the grant date. The term of stock-based awards typically ranges from six to ten years from the grant date. The shares of common stock issued in respect of awards under the 2012 Incentive Plan are issued from the Company’s authorized share capital upon exercise of options or SARs. The 2012 Incentive Plan empowers the Board, in its discretion, to amend the 2012 Incentive Plan in certain respects. Consistent with this authority, in February 2014 the Board adopted and approved certain amendments to the 2012 Incentive Plan. The key amendments are as follows: ● Increase of per grant limit: Section 15 (a) of the 2012 Incentive Plan was amended to allow the grant of up to 400,000 shares of the Company’s common stock with respect to the initial grant of an equity award to newly hired executive officers in any calendar year; and ● Acceleration of vesting: Section 15 (l) of the 2012 Incentive Plan was amended to clarify the Company’s ability to provide in the applicable award agreement that part and/or all of the award will be accelerated upon the occurrence of certain predetermined events and/or conditions, such as a change in control (as defined in the 2012 Incentive Plan, as amended).

Note 7 - Interest Expense, Net

6 Months Ended

Jun. 30, 2017

Interest Expense Disclosure [Text Block]

NOTE

7

— INTEREST EXPENSE, NET

The components of interest expense are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016

Interest related to sale of tax benefits	$	1,849		$	2,846		$	3,861		$	3,704
Interest expense		14,146			15,863			28,321			31,488
Less — amount capitalized		(1,455	)		(308	)		(2,719	)		(768	)
	$	14,540		$	18,401		$	29,463		$	34,424

Note 8 - Earnings Per Share

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Text Block]

NOTE

8

— EARNINGS PER SHARE

Basic earnings per share attributable to the Company’s stockholders is computed by dividing net income or loss attributable to the Company’s stockholders by the weighted average number of shares of common stock outstanding for the period. The Company does

not

have any equity instruments that are dilutive, except for employee stock-based awards.

The table below shows the reconciliation of the number of shares used in the computation of basic and diluted earnings per share:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016

Weighted average number of shares used in computation of basic earnings per share		49,771		49,456		49,726		49,314
Add:
Additional shares from the assumed exercise of employee stock options		853		681		833		663

Weighted average number of shares used in computation of diluted earnings per share		50,624		50,137		50,559		49,977

The number of stock-based awards that could potentially dilute future earnings per share and that were

not

included in the computation of diluted earnings per share because to do so would have been anti-dilutive was

2,363

and

135,875

for the

three

months ended

June 30, 2017

and

2016,

respectively, and

2,430

and

224,116

for the

six

months ended

June 30, 2017

and

2016,

respectively.

Note 9 - Business Segments

6 Months Ended

Jun. 30, 2017

Segment Reporting Disclosure [Text Block]

NOTE

9

— BUSINESS SEGMENTS

The Company has

two

reporting segments: the Electricity segment and the Product segment. These segments are managed and reported separately as each offers different products and serves different markets. The Electricity segment is engaged in the sale of electricity from the Company’s power plants pursuant to PPAs. The Product segment is engaged in the manufacture, including design and development, of turbines and power units for the supply of electrical energy and in the associated construction of power plants utilizing the power units manufactured by the Company to supply energy from geothermal fields and other alternative energy sources. Transfer prices between the operating segments are determined based on current market values or cost plus markup of the seller’s business segment.

Summarized financial information concerning the Company’s reportable segments is shown in the following tables:

	Electricity		Product		Consolidated
	(Dollars in thousands)
Three Months Ended June 30, 2017:
Net revenue from external customers	$	111,777	$	67,587	$	179,364
Intersegment revenue		—		16,565		16,565
Operating income		36,117		17,035		53,152
Segment assets at period end (1)		2,323,618		187,015		2,510,633

Three Months Ended June 30, 2016:
Net revenue from external customers	$	104,001	$	55,860	$	159,861
Intersegment revenue		—		19,266		19,266
Operating income		32,814		19,073		51,887
Segment assets at period end		2,031,650		241,363		2,273,013

Six Months Ended June 30, 2017:
Net revenues from external customers	$	227,553	$	141,709	$	369,262
Intersegment revenues		—		32,778		32,778
Operating income		77,015		35,633		112,648
Segment assets at period end (1)		2,323,618		187,015		2,510,633

Six Months Ended June 30, 2016:
Net revenues from external customers	$	211,869	$	99,586	$	311,455
Intersegment revenues		—		21,206		21,206
Operating income		67,599		34,831		102,430
Segment assets at period end		2,031,650		241,363		2,273,013

(

1

)

Electricity segment assets include goodwill in the amount of

$20.1

million

Reconciling information between reportable segments and the Company’s consolidated totals is shown in the following table:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016

Revenue:
Total segment revenue	$	179,364		$	159,861		$	369,262		$	311,455
Intersegment revenue		16,565			19,266			32,778			21,206
Elimination of intersegment revenue		(16,565	)		(19,266	)		(32,778	)		(21,206	)
Total consolidated revenue	$	179,364		$	159,861		$	369,262		$	311,455

Operating income:
Operating income	$	53,152		$	51,887		$	112,648		$	102,430
Interest income		362			245			606			565
Interest expense, net		(14,540	)		(18,401	)		(29,463	)		(34,424	)
Derivatives and foreign currency transaction gains (losses)		1,703			(4,332	)		3,041			(2,370	)
Income attributable to sale of tax benefits		4,356			4,519			10,513			8,917
Other non-operating income (expense), net		6			49			(86	)		240
Total consolidated income before income taxes and equity in income of investees	$	45,039		$	33,967		$	97,259		$	75,358

Note 10 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Text Block]

NOTE

10

— COMMITMENTS AND CONTINGENCIES

●

Jon Olson and Hilary Wilt, together with Puna Pono Alliance filed a complaint on

February 17, 2015

in the Third Circuit Court for the State of Hawaii, requesting declaratory and injunctive relief requiring that PGV comply with an ordinance that the plaintiffs allege will prohibit PGV from engaging in night drilling operations at its KS-

16

well site. On

May 17, 2015,

the original complaint was amended to add the County of Hawaii and the State of Hawaii Department of Land and Natural Resources as defendants to the case. On

October 10, 2016,

the court issued its decision in response to each of the plaintiffs’ and defendants’ motions for summary judgment, denying plaintiffs’ motion and granting defendant PGV's and the County of Hawaii’s cross motions for summary judgment, effectively rendering the plaintiffs’ action moot. On

January 23, 2017,

the plaintiffs filed a motion requesting that the Intermediate Court of Appeals address appellate jurisdiction, which was denied by the court on

April 20, 2017

as premature. The Company believes that it has valid defenses under law, and intends to defend itself vigorously.

●

On

July 8, 2014,

Global Community Monitor, LiUNA, and

two

residents of Bishop, California filed a complaint in the U.S. District Court for the Eastern District of California, alleging that Mammoth Pacific, L.P., the Company and Ormat Nevada are operating

three

geothermal generating plants in Mammoth Lakes, California (MP-

1,

MP-II and PLES-I) in violation of the federal Clean Air Act and Great Basin Unified Air Pollution Control District rules. On

June 26, 2015,

in response to a motion by the defendants, the court dismissed all but

one

of the plaintiffs’ causes of action. On

January 6, 2017,

the court issued its order regarding several pending motions, including plaintiffs’ motion for partial summary judgment, defendants' motion for summary judgment, defendants' motion to exclude and defendants' motion for leave to file a sur-reply. The impact of the court’s

January 6, 2017

order is to deny the plaintiffs’ sole remaining cause of action.

No

appeal by the plaintiffs is expected and the company considers this case to be effectively closed.

●

On

March 29, 2016,

a former local sales representative in Chile, Aquavant, S.A., filed a claim against Ormat’s subsidiaries in the

27th

Civil Court of Santiago, Chile on the basis of unjust enrichment. The claim requests that the court order Ormat to pay Aquavant

$4.8

million in connection with its activities in Chile, including the EPC contract for the Cerro Pabellon project and various geothermal concessions, plus

3.75%

of Ormat geothermal products sales in Chile over the next

10

years. In response to various motions submitted by the defendants, including a motion describing preliminary procedural defenses, on

August 16, 2016,

and

October 11, 2016,

the

27th

Civil Court issued a number of decisions, which were followed by a decision of

May 26, 2017

by the Court of Appeals of Santiago. The outcome of these decisions is that the

11th

Civil Court of Santiago was found to be the competent court and various of the preliminary procedural defenses are still pending. The Company believes that it has valid defenses under law, and intends to defend itself vigorously.

●

On

August 5, 2016,

George Douvris, Stephanie Douvris, Michael Hale, Cheryl Cacocci, Hillary E. Wilt and Christina Bryan, acting for themselves and on behalf of all other similarly situated residents of the lower Puna District, filed a complaint in the Third Circuit Court for the State of Hawaii seeking certification of a class action for preliminary and permanent injunctive relief, consequential and punitive damages, attorney’s fees and statutory interest against PGV and other presently unknown defendants. On

December 12, 2016,

the federal district court granted plaintiffs’ motion for joinder of HELCO as a co-defendant, and the case, which had previously been removed to the U.S. District Court for the District of Hawaii, was remanded back to the Third Circuit Court. The amended complaint alleges that injuries and other damages in an undisclosed amount were caused to the plaintiffs as a result of an alleged toxic release by PGV in the wake of Hurricane Iselle in

August 2014.

On

June 14, 2017,

the Third Circuit Court denied HELCO’s motion to discuss the complaint against itself which it had filed On

March 25, 2017.

Discovery is underway. The Company believes that it has valid defenses under law, and intends to defend itself vigorously.

●

On

June 20, 2016,

Nadia Garcia, individually and as successor in interest to Thomas Garcia Valenzuela, and as guardian ad litem to Emerie Garcia, Khamilla Garcia and Reyene Adam, filed a complaint against Ormat Technologies, Ormat Nevada and Ormesa LLC in the Superior Court of Imperial County seeking unspecified monetary damages. The complaint alleges that the Ormat defendants caused the wrongful death, personal injury and other harm to Thomas Garcia when he was employed by Martin Hydroblasting Services, Inc. and suffered injuries leading to his death while performing work at the Ormesa plant site on or around

March 31, 2016.

The plaintiffs and the deceased's employer’s insurer reached an out of court settlement that was approved by the US District Court, Southern District of California, and executed

May 25, 2017.

The case has been dismissed, without liability to the Company.

In addition, from time to time, the Company is named as a party to various other lawsuits, claims and other legal and regulatory proceedings that arise in the ordinary course of its business. These actions typically seek, among other things, compensation for alleged personal injury, breach of contract, property damage, punitive damages, civil penalties or other losses, or injunctive or declaratory relief. With respect to such lawsuits, claims and proceedings, the Company accrues reserves when a loss is probable and the amount of such loss can be reasonably estimated. It is the opinion of the Company’s management that the outcome of these proceedings, individually and collectively, will

not

be material to the Company’s consolidated financial statements as a whole.

Note 11 - Income Taxes (Restated)	6 Months Ended
Note 11 - Income Taxes (Restated)	Jun. 30, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE 11 — INCOME TAXES (Restated) As further described in Note 1, the Company has restated, for 2017, and revised, for 2016, its previously issued unaudited condensed consolidated financial statements for the three and six months ended June 30, 2017 and 2016. Also as further described in Note 1 and in connection with the closing of the SCPPA PPA portfolio agreement, during the second quarter of 2017, the Company changed its assertion related to permanent reinvestment of foreign unremitted earnings in Ormat Systems, its Israeli fully owned subsidiary. Accordingly, a deferred tax liability in the amount of $110.5 million was recorded which represents the estimated tax impact of future repatriation of the unremitted foreign earning in Ormat Systems at the statutory U.S. tax rate of 35%. Additionally, the Company accrued $53.9 million for the estimated Israeli withholding taxes expected when Ormat Systems remits its earnings to the U.S. The Company also recorded a deferred tax asset in the amount of $109.6 million for foreign tax credits related to taxes already paid by Ormat Systems on such earnings in Israel. Realization of the deferred tax assets and tax credits is dependent on generating sufficient taxable income in appropriate jurisdictions prior to expiration of the NOL carryforwards and tax credits. In prior periods and through March 31, 2017, the Company had maintained a valuation allowance against its net deferred tax asset balance in the U.S. As of March 31, 2017, such valuation allowance was $116.2 million. Based upon new available evidence of the Company’s ability to generate additional taxable income in the U.S. due to the closing of the SCPPA PPA portfolio and the Company’s permanent reinvestment of unremitted earnings assertion change with respect to Ormat Systems Ltd., $35.6 million of valuation allowance was released against the U.S. deferred tax assets, as it is more likely than not that the deferred tax assets will be utilized. However, the Company is maintaining a valuation allowance of $74.6 million against a portion of the U.S. foreign tax credits and state net operating loss that are expected to expire before they can be utilized in future periods. Additionally, the Company recorded a specific valuation allowance of $6.0 million attributable to current year projected activity as this will need to be held back and recognized throughout the year as current year income is earned for a total valuation allowance of $80.6 million as of June 30, 2017. This valuation allowance is based upon management’s estimates of future taxable income. Although the degree of variability inherent in the estimates of future taxable income is significant and subject to change in the near term, management believes that the estimate is adequate. However, the amount of deferred tax asset considered realizable could change in the near term if estimates which require significant judgment of future taxable income during the carryforward period are increased or decreased. Accordingly, the estimated valuation allowance is continually reviewed and as adjustments to the valuation allowance become necessary, such adjustments will be reflected in current earnings. The Company’s effective tax rate for the three months ended June 30, 2017 and 2016 was 72.7% and 25.1%, respectively, and 45.0% and 23.3% for the six months ended June 30, 2017 and 2016, respectively. The effective rate differs from the federal statutory rate of 35% for the six months ended June 30, 2017 due to: (i) withholding taxes related to the assertion change on the Company’s permanent reinvestment of foreign unremitted earnings in Ormat Systems also as described above, (ii) a partial valuation allowance release against the Company’s U.S. deferred tax assets (iii) lower tax rate in Israel of 16%, partially offset by a tax rate in Kenya of 37.5%; and (iv) a tax credit and tax exemption related to the Company’s subsidiaries in Guatemala and Honduras. The effect of the tax credit and tax exemption for the three months ended June 30, 2017 and 2016 was $0.8 million and $1.1 million, respectively, and for the six months ended June 30, 2017 and 2016 was $1.7 million and $2.3 million, respectively. As described above, the Company recorded a partial valuation allowance against the Company’s foreign tax credits and state net operating loss that are expected to expire before they can be utilized in future periods. As of December 31, 2016, the Company had Federal NOL carryforwards of approximately $331.5 million, which expire between 2029 and 2036, and state NOL carryforwards of approximately $231.1 million, which expire between 2018 and 2036 which are available to reduce future taxable income. The Company's production tax credits (“PTCs”) in the amount of $83.2 million at December 31, 2016 are available for a 20 -year period and expire between 2026 and 2036. The total amount of undistributed earnings of foreign subsidiaries related to Ormat Systems for income tax purposes was approximately $367 million at December 31, 2016. Although the Company plans to repatriate undistributed earnings related to Ormat Systems to support expected capital expenditure requirements in the U.S., based upon its plans to increase its operations outside of the U.S., it is the Company’s intention to reinvest undistributed earnings of its other foreign subsidiaries and thereby indefinitely postpone their remittance, given that the Company requires existing and future cash to fund the anticipated investment and development activities as well as debt service requirements in those jurisdictions. In addition, the Company believes that existing and anticipated cash flows as well as borrowing capacity in the U.S. and cash to be remitted to the U.S. from Ormat Systems will be sufficient to meet its needs in the U.S. Accordingly, no provision has been made for foreign withholding taxes or U.S. income taxes with respect to its foreign subsidiaries, other than Ormat Systems, which may become payable if undistributed earnings of foreign subsidiaries were paid as dividends to the Company. The additional taxes on that portion of undistributed earnings in those other jurisdictions which is available for dividends are not practicably determinable. If plans change, the Company may be required to accrue and pay U.S. taxes to repatriate these funds. The Company is subject to income taxes in the U.S. (federal and state) and in numerous foreign jurisdictions. Significant judgment is required in evaluating tax positions and determining the position for income taxes. Reserves are established to tax-related uncertainties based on estimates of whether, and the extent to which additional taxes will be due. As of June 30, 2017, the Company is unaware of any potentially significant uncertain tax positions for which a reserve has not been established. As previously reported by the Company, the Kenya Revenue Authority (“KRA”) conducted an audit related to the Company’s operations in Kenya for fiscal years 2012 and 2013. On June 20, 2017, the Company signed a Settlement Agreement with the KRA (the “Settlement Agreement”) under which it paid approximately $2.6 million in principal for full settlement of all claims raised by the KRA during the audit. The principal amount that was paid in June 2017 was recorded as an addition to the cost of the power plants and is qualified for investment deduction at 150% under the terms of the Settlement Agreement. Additionally, as per the Settlement Agreement, the Company submitted a request for waiver on the applied interest in the amount of approximately $1.2 million, for which the Company recorded a provision to cover such a potential exposure.

Note 12 - Subsequent Events

6 Months Ended

Jun. 30, 2017

Subsequent Events [Text Block]

NOTE

12

—

SUBSEQUENT EVENTS

Cash dividend

On

August 3, 2017,

the Board declared, approved and authorized payment of a quarterly dividend of

$4.0

million (

$0.08

per share) to all holders of the Company’s issued and outstanding shares of common stock on

August 15, 2017,

payable on

August 29, 2017.

ORIX transaction

On

May 4, 2017,

the Company announced that ORIX Corporation (“ORIX”) had entered into a definitive agreement with certain stockholders of the Company providing for the acquisition of approximately

11

million shares of the Company’s common stock, representing an approximately

22%

ownership stake in the Company, from FIMI ENRG Limited Partnership, FIMI ENRG, L.P. (collectively, “FIMI”), Bronicki Investments, Ltd. (“Bronicki”), and certain senior members of the Company’s management team. Also on

May 4, 2017,

the Company announced that the Company and ORIX entered into certain related agreements, including a Governance Agreement, a Commercial Cooperation Agreement and a Registration Rights Agreement, following the unanimous recommendation of a Special Committee of the Board that was formed to evaluate and negotiate the stockholder arrangements proposed by ORIX, and following unanimous approval by the Board. The closing of the stock purchase transaction and the transactions contemplated by the related agreements between the Company and ORIX occurred on

July 26, 2017.

Under the Governance Agreement, ORIX has the right to designate

three

persons to the Board, which was expanded to

nine

directors, and also propose a

fourth

person to be mutually agreed by the Company and ORIX to serve as a new independent director on the Board. In addition, for so long as ORIX is entitled to board representation pursuant to the Governance Agreement, ORIX will be subject to certain customary standstill restrictions, including an effective

25%

cap on its voting rights. Pursuant to the Registration Rights Agreement, ORIX also has certain customary registration rights with respect to the shares of the Company’s common stock that it owns.

Under the Commercial Cooperation Agreement, the Company has exclusive rights to develop, own, operate and provide equipment for ORIX geothermal energy projects in all markets outside of Japan. In addition, the Company has certain rights to serve as technical partner and co-invest in ORIX geothermal energy projects in Japan. ORIX will also assist the Company in obtaining project financing for its geothermal energy projects from a variety of leading providers of renewable energy debt financing with which ORIX has relationships in Asia and around the world.

ORTP buyout

On

March 30, 2017,

the ORTP Flip Date occurred and on

July 10, 2017,

Ormat Nevada purchased all of the Class B membership units from JP Morgan for

$2.35

million. As a result, Ormat Nevada is now the sole owner of all controlling voting interests in ORTP and continues to consolidate ORTP in its financial statements.

Events subsequent to original issuance of financial statements

Cash dividend

On

November 7, 2017,

the Board declared, approved and authorized payment of a quarterly dividend of

$4.0

million (

$0.08

per share) to all holders of the Company’s issued and outstanding shares of common stock on

November 21, 2017,

payable on

December 5, 2017.

On

March 1, 2018,

the Company’s Board declared, approved and authorized payment of a quarterly dividend of

$11.5

million (

$0.23

per share) to all holders of the Company’s issued and outstanding shares of common stock on

March 14, 2018,

payable on

March 29, 2018.

On

May 7, 2018,

the Board declared, approved and authorized payment of a quarterly dividend of

$5.1

million (

$0.10

per share) to all holders of the Company’s issued and outstanding shares of common stock on

May 21, 2018,

payable on

May 30, 2018.

Compliance with financial covenants

In relation to covenants in certain debt facilities, which require timely filing of quarterly financial statements, the Company received waivers from each of its and its subsidiaries’ lenders as follows:

●

The Company received waivers extending the period required to file the quarterly condensed consolidated financial statements for the

three

months ended

March 31, 2018

for all debt facilities with a

May 30, 2018

filing deadline. The Company subsequently filed such financial statements within the period provided by the waivers.

●

The deeds of trust governing the Company’s series

2

and series

3

senior unsecured bonds contain a

June 14, 2018

filing deadline for the quarterly condensed consolidated financial statements for the

three

months ended

March 31, 2018.

Nevertheless, the failure to file is

not

a default under the bonds and the bonds are

not

accelerated unless a majority of bondholders votes to take action to accelerate the maturity date of the bonds, which did

not

occur prior to the late filing of the Form

10

-Q for the quarter ended

March 31, 2018.

However, since the ability of the bondholders to accelerate

may

trigger a cross default under certain of the Company other debt facilities, the Company received waivers of any potential cross default under those facilities.

Following the filing of such condensed consolidated financial statements and the filing of the restated consolidated financial statements for the fiscal year ended

December 31, 2017

and the restated condensed consolidated financial statements for the

second

and

third

quarters of

2017,

the Company believes that it and its subsidiaries are in compliance with the reporting covenants and all other covenants under their debt facilities.

Legal proceedings

On

May 21, 2018,

a motion to certify a class action was filed in the Tel Aviv District Court (Economic Division) entitled Heit vs Ormat Technologies, Inc. et al (C.A.

44366

-

05

-

18

). The motion purports that the Company and

eleven

of its officers and directors misled investors by asserting in its financial statements that it maintains effective internal controls over its accounting policies and procedures, and demands payment of

93

million Shekels (approximately

$26

million) to compensate persons who purchased Company shares between

August 3, 2017

and

May 13, 2018.

The Company believes that it has valid defenses under law and intends to defend itself vigorously. Pending resolution of the putative class action filed in the United States and described below, the Company intends to seek a stay of the proceedings in relation to the claim filed in the Tel Aviv District Court.

On

June 11, 2018,

a putative class action on behalf of alleged shareholders that purchased or acquired the Company's ordinary shares between

August 8, 2017

and

May 15, 2018

was commenced in the United States District Court for the District of Nevada against the Company and its Chief Executive Officer and Chief Financial Officer. The complaint asserts claims against all defendants pursuant to Section

10

(b) of the Exchange Act, as amended and Rule

10b

-

5

there under Section

20

(a) of the Exchange Act, as amended. The complaint alleges that the Company's Form

10

-K for the years ended

December 31, 2016

and

2017,

and Form

10

-Qs for each of the quarters in the

nine

months ended

September 30, 2017

contained material misstatements or omissions, among other things, with respect to the Company’s tax provisions and the effectiveness of its internal control over financial reporting, and that, as a result of such alleged misstatements and omissions, the plaintiffs suffered damages. The Company has

not

yet responded to the complaints. The Company believes that it has valid defenses under law and intends to defend itself vigorously.

Tungsten Mountain partnership

transaction

On

May 17, 2018,

one

of the Company’s wholly-owned subsidiaries that indirectly owns the

26

MW Tungsten Mountain Geothermal power plant entered into a partnership agreement with a private investor. Under the transaction documents, the private investor acquired membership interests in the Tungsten Mountain Geothermal power plant project for an initial purchase price of approximately

$33.4

million and for which it will pay additional installments that are expected to amount to approximately

$13

million. The Company will continue to operate and maintain the power plant and will receive substantially all the distributable cash flow generated by the power plant.

Puna

On

May 3, 2018,

the Kilauea volcano located in close proximity to the Company’s

38

MW Puna geothermal power plant in the Puna district of Hawaii's Big Island erupted following a significant increase in seismic activity in the area. While the Company has taken steps to secure the Puna facilities, including, among others, taking electricity generation offline and placing physical barriers around, and protective coverings over, the geothermal wells, and has evacuated non-essential personnel at the power plant and removed all pentane from the site, it is still assessing the impact of the volcanic eruption and seismic activity on the Puna facilities. The approaching lava covered the wellheads of

three

geothermal wells and the substation of the Puna complex and an adjacent warehouse that stored a drilling rig were burned due to the approaching lava. The damages are expected to be covered by the Company’s insurance policies. The net book value of the Puna property, plant and equipment is approximately

$109

million. The Company cannot currently estimate when the lava flow will stop nor when it will be able to assess all of the damages. Any significant physical damage to, or extended shut-down of, the Puna facilities could have an adverse impact on the power plant's electricity generation and availability, which in turn could have a material adverse impact on the Company’s business and results of operations. The Company continues to monitor the condition of the Puna facilities, coordinate with HELCO and local authorities, and is taking steps to both further secure the power plant and restore its operations as soon as it is safe to do so. In addition, the Company will be assessing the accounting implications of this event on the assets and liabilities on its balance sheet and whether an impairment will be required.

Platanares loan

On

April 30, 2018,

the Company, through its wholly owned subsidiary, and the Overseas Private Investment Corporation (“OPIC”), an agency of the United States Government, signed a finance agreement for non-recourse project financing totaling up to

$124.7

million for the

35

MW Platanares geothermal power plant in Honduras. The loan

may

be funded to Platanares in up to

three

total disbursements and will have a final maturity of approximately

14

years. Closing and disbursements of the loan are subject to customary conditions for funding, which the Company expects to satisfy by the end of the

second

quarter of

2018.

Upon closing, the interest rate on the loan will be determined, and is expected to be between

6.75%

and

7.25%

based on the current estimates for U.S. Treasury and for the additional spread on OPIC certificates of participation.

U.S. Geothermal transaction

On

April 24, 2018,

the Company completed its previously announced acquisition of U.S. Geothermal Inc. ("USG"). The total cash consideration (exclusive of transaction expenses) was approximately

$110

million, comprising approximately

$106

million funded from available cash of Ormat Nevada Inc. (to acquire the outstanding shares of common stock of USG) and approximately

$4

million funded from available cash of USG (to cash-settle outstanding in-the-money options for common stock of USG). As a result of the acquisition, USG became an indirect wholly owned subsidiary of Ormat, and Ormat indirectly acquired, among other things, interests held by USG and its subsidiaries in:

●

three

operating power plants at Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho with a total net generating capacity of approximately

38

MW; and

●

development assets which include a project at the Geysers, California; a

second

phase project at San Emidio, Nevada; a greenfield project in Crescent Valley, Nevada; and the El Ceibillo project located near Guatemala City, Guatemala.

The Company accounted for the transaction in accordance with ASC

805,

Business Combinations and following the transaction, the Company will consolidate USG in accordance with ASC

810,

Consolidation. Accounting guidance provides that the allocation of the purchase price

may

be modified for up to

one

year from the date of the acquisition to the extent that additional information is obtained about the facts and circumstances that existed as of the acquisition date. The Company expects that the adoption of ASU

2017

-

01,

Business Combinations, as further described under Note

2

to the consolidated financial statements, would

not

have an effect on the U.S. Geothermal transaction.

The Company deemed the transaction to

not

meet the significant subsidiary threshold and as a result did

not

provide additional pro-forma and other related information, that otherwise would have been required.

Migdal Senior Unsecured Loan

On

March 22, 2018,

the Company entered into a definitive loan agreement (the "Migdal Loan Agreement") with Migdal Insurance Company Ltd., Migdal Makefet Pension and Provident Funds Ltd. and Yozma Pension Fund of Self Employed Ltd., all entities within the Migdal Group, a leading insurance company and institutional investor in Israel. The Migdal Loan Agreement provides for a loan by the lenders to the Company in an aggregate principal amount of

$100

million (the “Migdal Loan”). The Migdal Loan will be repaid in

15

semi-annual payments of

$4.2

million each, commencing on

September 15, 2021,

with a final payment of

$37

million on

March 15, 2029.

The Migdal Loan bears interest at a fixed rate of

4.8%

per annum, payable semi-annually, subject to adjustment in certain circumstances as described below.

The Migdal Loan is subject to early redemption by the Company prior to maturity from time to time (but

not

more frequently than once per quarter) and at any time in whole or in part, at a redemption price set forth in the Migdal Loan Agreement. If the rating of the Company is downgraded to "ilA-", by Standard and Poor’s Global Ratings Maalot Ltd. (“Maalot”), the interest rate applicable to the Migdal Loan will be increased by

0.50%.

If the rating of the Company is further downgraded to a lower level, the interest rate applicable to the Migdal Loan will be increased by

0.25%

for each additional downgrade. In

no

event will the cumulative increase in the interest rate applicable to the Migdal Loan exceed

1%

regardless of the cumulative rating downgrade. A subsequent upgrade or reinstatement of a rating by Maalot will reduce the interest rate applicable to the Migdal Loan by

0.25%

for each upgrade (but in

no

event will the interest rate applicable the Migdal Loan fall below the base interest rate of

4.8%

). Additionally, if the ratio between short-term and long-term debt to financial institutions and bondholders, deducting cash and cash equivalents to EBITDA is equal to or higher than

4.5,

the interest rate on all amounts then outstanding under the Migdal Loan shall be increased by

0.5%

per annum over the interest rate then-applicable to the Migdal Loan.

The Migdal Loan constitutes senior unsecured indebtedness of the Company and will rank equally in right of payment with any existing and future senior unsecured indebtedness of the Company, and effectively junior to any existing and future secured indebtedness, to the extent of the security therefore.

The Migdal Loan Agreement includes various affirmative and negative covenants, including a covenant that the Company maintain (i) a debt to adjusted EBITDA ratio below

6,

(ii) a minimum equity amount (as shown on its consolidated financial statements, excluding noncontrolling interests) of

not

less than

$650

million, and (iii) an equity attributable to Company's stockholders to total assets ratio of

not

less than

25%.

In addition, the Migdal Loan Agreement restricts the Company from making dividend payments if its equity falls below

$800

million and otherwise restricts dividend payments in any

one

year to

not

more than

50%

of the net income of the Company of such year as shown on the Company’s consolidated annual financial statements as long as any of the Company's bonds issued in Israel prior to

March 27, 2018

remain outstanding. The Migdal Loan Agreement includes other customary affirmative and negative covenants and events of default.

Tungsten Mountain

On

December 13, 2017,

the Company announced that the

24

MW Tungsten Mountain geothermal power plant (“Tungsten Mountain”) located in Churchill County, Nevada, began commercial operation on

December 1, 2017.

Tungsten Mountain will sell its power under the

26

-year power purchase agreement (“PPA”), dated as of

October 20, 2016,

between the Company’s wholly owned subsidiary ONGP, LLC and SCPPA (the “ONGP Portfolio PPA”), which was announced in

June 2017.

In accordance with the agreement, SCPPA resells the entire output of the plant to LADWP. The power plant is expected to generate approximately

$15

million in average annual revenue for the Company. The Tungsten Mountain geothermal power plant utilizes the Company’s latest turbine design and contains the largest OEC ever installed. The new and innovative turbine design will increase the OEC’s efficiency, capacity, and availability.

Platanares geothermal power plant

On

September 26, 2017,

the Company announced that its

35

MW Platanares geothermal project in Honduras commenced commercial operation. The Company constructed the Platanares geothermal project under a Build, Operate, and Transfer (“BOT”) contract with ELCOSA, a privately owned Honduran energy company. The Company will operate the project for

15

years from commercial operation date (COD). Platanares sells its power under a

30

-year power purchase agreement with the national utility of Honduras, ENEE. A portion of the land on which the project is located at is held by us through a lease from a local municipality. Because the term of the lease exceeds the term in office of the relevant municipal government, it remains subject to an additional approval of the Honduran Congress in order to be fully valid. The Company has commenced the necessary steps to obtain such approval but the current elections in Honduras

may

result in a delay in obtaining such approval.

OFC Senior Secured Notes prepayment

In

September 2017,

the Company fully prepaid all of its outstanding OFC Senior Secured Notes for

$14.3

million. As a result of the prepayment, the Company recognized a loss of

$1.5

million, including amortization of deferred financing costs of

$0.2

million, which was included in other non-operating income (expense), net in the consolidated statements of operations and comprehensive income for the

three

and

nine

months ended

September 30, 2017.

Deutsche Investitions-und Entwicklungsgesellschaft mbH ("DEG") Loan prepayment

In

September 2017,

the Company fully prepaid its DEG loan for

$11.8

million. As a result of the prepayment, the Company recognized a loss of

$0.5

million, including amortization of deferred financing costs of

$0.4

million, which was included in other non-operating income (expense), net in the consolidated statements of operations and comprehensive income for the

three

and

nine

months ended

September 30, 2017.

OPC buyout

On

May 31, 2017,

the Company’s partners JPM and Morgan Stanley achieved their target after-tax yield on its investment in OPC, LLC (“OPC”) and on

October 31, 2017,

Ormat Nevada purchased all of the Class B membership units in OPC from JPM and Morgan Stanley for

$1.9

million. As a result, Ormat Nevada is now the sole owner of all of the economic and voting interests in OPC and continues to consolidate OPC in its financial statements.

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Reclassification, Policy [Policy Text Block]

Restatement of p

r

eviously is

s

u

e

d

condensed consolidated

financ

i

a

l statements

As described further in Note

11,

in the

second

quarter of

2017,

the Company partially released its valuation allowance against the U.S. deferred tax assets. During the

first

quarter of

2018,

the Company concluded that there were material tax provision and related balance sheet errors in its previously issued financial statements as of and for the

three

and

six

months ended

June 30, 2017,

primarily relating to the Company’s ability to utilize Federal tax credits in the U.S. prior to their expiration starting in

2027,

and the resulting impact on the Company’s deferred tax asset valuation allowance. Specifically, the error in the deferred tax asset valuation allowance resulted in an understatement of the income tax provision and an overstatement of net income of

$26.4

million and

$26.5

million for the

three

and

six

months ended

June 30, 2017,

respectively. As a result of such errors, the Company concluded that the previously issued unaudited condensed consolidated financial statements as of and for the

three

and

six

months ended

June 30, 2017

were materially misstated, and, accordingly, has restated these financial statements. Included in such restatement is also the correction of other immaterial tax errors, including an out-of-period adjustment that had been previously recorded for the correction of an understated liability for unrecognized tax benefits related to intercompany interest.

Revis

i

on

of p

r

eviously is

s

u

e

d

condensed consolidated

financ

i

a

l statements

The Company had previously identified certain other tax errors, including a prior period error related to the translation of deferred tax liabilities in the Company’s Kenyan subsidiary and an error in the effective tax rate calculation in the

first

quarter of

2016,

which were previously determined to be immaterial and were previously corrected for as out-of-period adjustments in the period of identification.

The Company assessed the materiality of these errors in accordance with the SEC’s Staff Accounting Bulletin (“SAB”) Topic

1.M,

Materiality, codified in ASC Topic

250,

Presentation of Financial Statements (“ASC

250”

), and concluded that the previously issued unaudited condensed consolidated interim financial statements for the

three

months ended

March 31, 2017

and

2016

and the

three

and

six

months ended

June 30, 2016

were

not

materially misstated; however, in order to correctly reflect the immaterial adjustments as described above in the appropriate period, management has elected to revise the affected previously issued financial statements in this Form

10

-Q/A filing. As a result, the revised condensed consolidated financial statements for the

three

and

six

months ended

June 30, 2016

reflect a

$0.6

million and

$0.2

million increase, respectively, in the tax provision, with a corresponding decrease in net income and comprehensive income. In addition, the revised condensed consolidated financial statements for the

three

months ended

March 31, 2017

and

2016

reflect a

$0.1

million increase and a

$0.4

million decrease, respectively, in the tax provision, with a corresponding impact to net income and comprehensive income. The impact of the revision as of

January 1

and

December 31, 2016

was an increase of

$3.9

million and decrease of

$1.3

million, respectively, to retained earnings, as a result of certain tax errors originating in periods prior to

2016,

primarily related to the error in the determination of the exchange rate used in the translation of deferred tax liabilities in the Company’s Kenyan subsidiary.

The effects of the

2017

restatement and the

2016

revision on the line items within the Company's condensed consolidated balance sheets as of

June 30, 2017

and

December 31, 2016

are as follows (in thousands):

	June 30, 2017									December 31, 2016
	As originally reported			Adjustments			As Restated			As originally reported			Adjustments			As Revised
Deferred income tax liabilities	$	44,113		$	28,198		$	72,311		$	35,382		$	1,029		$	36,411
Liability for unrecognized tax benefits		6,015			-			6,015			5,738			706			6,444
Total liabilities		1,277,136			28,198			1,305,334			1,286,790			1,735			1,288,525
Retained earnings		274,566			(27,806	)		246,760			216,644			(1,292	)		215,352
Accumulated other comprehensive loss		(6,933	)		(392	)		(7,325	)		(7,732	)		(443	)		(8,175	)
Total stockholders’ equity attributable to the Company’s stockholders		1,143,274			(28,198	)		1,115,076			1,078,425			(1,735	)		1,076,690
Total equity		1,227,599			(28,198	)		1,199,401			1,170,007			(1,735	)		1,168,272

The effects of the

2017

restatement and

2016

revision on the line items within the Company's condensed consolidated statements of operations and comprehensive income for the

three

and

six

months ended

June 30, 2017

and

2016

are as follows (in thousands):

	Three months ended June 30, 2017									Six months ended June 30, 2017
	As originally reported			Adjustments			As Restated			As originally reported			Adjustments			As Restated
Income tax provision	$	(6,369	)	$	(26,396	)	$	(32,765	)	$	(17,255	)	$	(26,514	)	$	(43,769	)
Income from continuing operations		38,242			(26,396	)		11,846			77,977			(26,514	)		51,463
Net income attributable to the Company’s stockholders		35,036			(26,396	)		8,640			70,348			(26,514	)		43,834
Loss in respect of derivative instruments designated for cash flow hedge		20			25			45			42			51			93
Comprehensive income		38,792			(26,371	)		12,421			79,172			(26,463	)		52,709
Comprehensive income attributable to the Company’s stockholders		35,179			(26,371	)		8,808			71,147			(26,463	)		44,684
Net income per share attributable to the Company’s stockholders
Basic:	$	0.70		$	(0.53	)	$	0.17		$	1.41		$	(0.53	)	$	0.88
Diluted:	$	0.69		$	(0.52	)	$	0.17		$	1.39		$	(0.52	)	$	0.87

	Three months ended June 30, 2016									Six months ended June 30, 2016
	As originally reported			Adjustments			As Revised			As originally reported			Adjustments			As Revised
Income tax provision	$	(7,890	)	$	(625	)	$	(8,515	)	$	(17,399	)	$	(195	)	$	(17,594	)
Income from continuing operations		24,933			(625	)		24,308			55,878			(195	)		55,683
Net income attributable to the Company’s stockholders		24,349			(625	)		23,724			53,620			(195	)		53,425
Loss in respect of derivative instruments designated for cash flow hedge		22			13			35			43			27			70
Comprehensive income		22,944			(612	)		22,332			50,707			(168	)		50,539
Comprehensive income attributable to the Company’s stockholders		22,360			(612	)		21,748			48,449			(168	)		48,281
Net income per share attributable to the Company’s stockholders
Basic:	$	0.49		$	(0.01	)	$	0.48		$	1.09		$	(0.01	)	$	1.08
Diluted:	$	0.49		$	(0.02	)	$	0.47		$	1.07		$	-		$	1.07

The effects of the

2017

restatement and

2016

revision on the line items within the Company’s condensed consolidated statements of equity for the

six

months ended

June 30, 2017

and

2016

are as follows (in thousands):

	As originally reported			Adjustments			As Revised
Balances as of December 31, 2015:
Retained earnings	$	148,396		$	3,930		$	152,326
Accumulated other comprehensive loss		(7,667	)		(497	)		(8,164	)
Total stockholders’ equity attributable to the Company’s stockholders		990,001			3,433			993,434
Total equity		1,083,874			3,433			1,087,307
Net income for the six months ended June 30, 2016		55,878			(195	)		55,683
Net income attributable to the Company’s stockholders for the six months ended June 30, 2016		53,620			(195	)		53,425
Loss in respect of derivative instruments designated for cash flow hedge for the six months ended June 30, 2016		43			27			70
Balances as of June 30, 2016:
Retained earnings		183,018			3,735			186,753
Accumulated other comprehensive loss		(12,838	)		(470	)		(13,308	)
Total stockholders’ equity attributable to the Company’s stockholders		1,027,056			3,265			1,030,321
Total equity		1,117,435			3,265			1,120,700

	As originally reported			Adjustments			As Restated
Balances as of December 31, 2016:
Retained earnings	$	216,644		$	(1,292	)	$	215,352
Accumulated other comprehensive loss		(7,732	)		(443	)		(8,175	)
Total stockholders’ equity attributable to the Company stockholders		1,078,425			(1,735	)		1,076,690
Total equity		1,170,007			(1,735	)		1,168,272
Net income for the six months ended June 30, 2017		77,289			(26,514	)		50,775
Net income attributable to the Company’s stockholders for the six months ended June 30, 2017		70,348			(26,514	)		43,834
Loss in respect of derivative instruments designated for cash flow hedge for the six months ended June 30, 2017		42			51			93
Balances as of June 30, 2017:
Retained earnings		274,566			(27,806	)		246,760
Accumulated other comprehensive loss		(6,933	)		(392	)		(7,325	)
Total stockholders’ equity attributable to the Company’s stockholders		1,143,274			(28,198	)		1,115,076
Total equity		1,227,599			(28,198	)		1,199,401

Although there was

no

impact to net cash provided by operating activities, net cash used in investing activities or net cash used in financing activities, the effects of the

2017

restatement and the

2016

revision on the line items within the condensed consolidated statements of cash flows for the

six

months ended

June 30, 2017

and

2016

are as follows (in thousands):

	Six months ended June 30, 2017							Six months ended June 30, 2016
	As previously reported		Adjustments			As Restated		As previously reported			Adjustments			As Revised
Cash flows from operating activities:
Net income	$	77,977	$	(26,514	)	$	51,463	$	55,878		$	(195	)	$	55,683
Deferred income tax provision		8,375		26,396			34,771		13,254			-			13,254
Liability for unrecognized tax benefits		277		118			395		(411	)		195			(216	)
Net cash provided by operating activities		114,158		-			114,158		119,573			-			119,573

The impacts of the restatement and revision have been reflected throughout the financial statements, including the applicable footnotes, as appropriate. This resulted in changes to the deferred tax balances, valuation allowance and effective tax rate, together with other disclosures in Note

11.

Material Definitive Agreements, Policy [Policy Text Block]

SCPPA power purchase agreement

During the

second

quarter of

2017,

ONGP LLC (“ONGP”),

one

of the Company’s wholly-owned subsidiaries, entered into a Power Purchase Agreement (“PPA”) with Southern California Public Power Authority (“SCPPA”), pursuant to which ONGP will sell, and SCPPA will purchase, geothermal power generated by a portfolio of

nine

different geothermal power plants, owned by the Company and located in the US. The parties’ obligations under the PPA are based on a geothermal power generation capacity of

150

MW, and, pursuant to the PPA, ONGP is required to deliver a minimum of

135

MW and is entitled to deliver a maximum of

185

MW to SCPPA over the next

five

years. The portfolio PPA is for a term of approximately

26

years, expiring in

December 31, 2043

and has a fixed price of

$75.50

per MWh.

Assertion of Permanent Reinvestment of Foreign Unremitted Earnings in Subsidiaries, Policy [Policy Text Block]

Assertion of permanent reinvestment of foreign unremitted earnings in a subsidiary

During the

second

quarter of

2017,

in conjunction with the (i) final approval of the SCPPA PPA which will require the Company to make significant capital expenditures in the U.S., (ii) the fact that the Company is currently looking for acquisitions in the U.S., and (iii) the acquisition of Viridity for a price of

$35.3

million with

two

additional earn-out payments expected to be made in

2018

and

2021,

the Company has re-evaluated its position with respect to a portion of the unrepatriated earnings of Ormat Systems (“OSL”), its fully owned Subsidiary in Israel, and after consideration of the aforementioned change in facts, determined that it can

no

longer maintain the permanent reinvestment position with respect to a portion of OSL's unrepatriated earnings which will be repatriated to support the Company’s capital expenditures in the U.S. Accordingly, and as further described in Note

11,

the permanent reinvestment assertion of foreign unremitted earnings of OSL was reassessed and removed and the related deferred tax assets and liabilities as well as the estimated withholding taxes on expected remittance of OSL earnings to the U.S. were recorded by the Company in the

second

quarter of

2017

.

Business Combinations Policy [Policy Text Block]

Viridity transaction

On

March 15, 2017,

the Company completed the acquisition of substantially all of the business and assets of Viridity Energy, Inc. (“VEI”), a privately held Philadelphia-based company engaged in the provision of demand response, energy management and energy storage services. At closing, Viridity Energy Solutions Inc. (“Viridity”), a wholly owned subsidiary of the Company, paid initial consideration of

$35.3

million. Additional contingent consideration with an estimated fair value of $

12.8

million will be payable in

two

installments upon the achievement of certain performance milestones measured at the end of fiscal years

2017

and

2020.

The acquired business and assets are operated by Viridity.

Using proprietary software and solutions, Viridity serves primarily retail energy providers, utilities, and large commercial and industrial customers. Viridity’s offerings enable its customers to optimize and monetize their energy management, demand response and storage facilities potential by interacting on their behalf with regional transmission organizations and independent system operators.

The Company accounted for the transaction in accordance with Accounting Standard Codification

805,

Business Combinations, and consequently recorded intangible assets of

$34.7

million primarily relating to Viridity’s storage and non-storage activities with a weighted-average amortization period of

17

years, approximately

$0.4

million of working capital and fixed assets, and

$13.9

million of goodwill. Following the transaction, the Company consolidated Viridity, in accordance with Accounting Standard Codification

810,

Consolidation. The acquisition will enable the Company to enter the growing energy storage and demand response markets and expand its market presence.

The revenues of Viridity for the period from

March 15, 2017

to

June 30, 2017

were included in the Company’s consolidated statements of operations and comprehensive income for the

three

and

six

months ended

June 30, 2017.

Accounting guidance provides that the allocation of the purchase price

may

be modified for up to

one

year from the date of the acquisition to the extent that additional information is obtained about the facts and circumstances that existed as of the acquisition date.

Comprehensive Income, Policy [Policy Text Block]

Other comprehensive income

For the

six

months ended

June 30, 2017

and

2016,

the Company classified

$3,000

and

$5,000,

respectively, related to derivative instruments designated as cash flow hedges, from accumulated other comprehensive income, of which

$5,000

and

$10,000,

respectively, were recorded to reduce interest expense and

$2,000

and

$5,000,

respectively, were recorded against the income tax provision, in the condensed consolidated statements of operations and comprehensive income. For the

three

months ended

June 30, 2017

and

2016,

the Company classified

$1,000

and

$2,000,

respectively, related to derivative instruments designated as cash flow hedges, from accumulated other comprehensive income, of which

$3,000

and

$6,000

respectively, was recorded to reduce interest expense and

$1,000

and

$4,000,

respectively, were recorded against the income tax provision, in the condensed consolidated statements of operations and comprehensive income. The accumulated net loss included in Other comprehensive income as of

June 30, 2017,

is

$0.6

million

Exploratory Drilling Costs Capitalization and Impairment, Policy [Policy Text Block]

Write-offs of unsuccessful exploration activities

There were

no

write-offs of unsuccessful exploration activities for the

three

and

six

months ended

June 30, 2017.

Write-offs of unsuccessful exploration activities for the

three

and

six

months ended

2016

were

$0.9

million and

$1.4

million, respectively. The write-offs of exploration costs in

2016

were related to the Company’s exploration activities in Nevada and Chile, which the Company determined would

not

support commercial operations.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of credit risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of temporary cash investments and accounts receivable.

The Company places its temporary cash investments with high credit quality financial institutions located in the United States (“U.S.”) and in foreign countries. At

June 30, 2017

and

December 31, 2016,

the Company had deposits totaling

$31.3

million and

$72.5

million, respectively, in

seven

U.S. financial institutions that were federally insured up to

$250,000

per account. At

June 30, 2017

and

December 31, 2016,

the Company’s deposits in foreign countries amounted to approximately

$99.9

million and

$166.2

million, respectively.

At

June 30, 2017

and

December 31, 2016,

accounts receivable related to operations in foreign countries amounted to approximately

$53.5

million and

$53.3

million, respectively. At

June 30, 2017

and

December 31, 2016,

accounts receivable from the Company’s primary customers amounted to approximately

55%

and

60%

of the Company’s accounts receivable, respectively.

Sierra Pacific Power Company and Nevada Power Company (subsidiaries of NV Energy, Inc.) accounted for

16.7%

and

19.1%

of the Company’s total revenues for the

three

months ended

June 30, 2017

and

2016,

respectively, and

17.8%

and

21.1%

for the

six

months ended

June 30, 2017

and

2016,

respectively.

Kenya Power and Lighting Co. Ltd. accounted for

15.4%

and

17.1%

of the Company’s total revenues for the

three

months ended

June 30, 2017

and

2016,

respectively, and

14.8%

and

17.2%

of the Company’s total revenues for the

six

months ended

June 30, 2017

and

2016,

respectively.

SCPPA accounted for

8.7%

and

10.4%

of the Company’s total revenues for the

three

months ended

June 30, 2017

and

2016,

respectively, and

8.9%

and

11.2%

of the Company’s total revenues for the

six

months ended

June 30, 2017

and

2016,

respectively.

Hyundai (Sarulla geothermal power project) accounted for

4.9%

and

8.6%

of the Company’s total revenues for the

three

months ended

June 30, 2017

and

2016,

respectively, and

6.3%

and

9.0%

for the

six

months ended

June 30, 2017

and

2016,

respectively.

The Company has historically been able to collect on all of its receivable balances, and accordingly,

no

provision for doubtful accounts has been made.

New Accounting Pronouncements, Policy [Policy Text Block]

New accounting pronouncements effective in the

six

months ended

June 30, 2017

Improvement to Employee Share-Based Payment Accounting

In

March 2016,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”)

2016

-

09,

Improvement to Employee Share-Based Payment Accounting, an update to the guidance on stock-based compensation. Under the new guidance, all excess tax benefits and tax deficiencies will be recognized in the income statement as they occur. This will replaced previous guidance, which required tax benefits that exceed compensation cost (windfalls) to be recognized in equity. It also eliminated the need to maintain a “windfall pool,” and removed the requirement to delay recognizing a windfall until it reduces current taxes payable. The new guidance also changed the cash flow presentation of excess tax benefits, classifying them as operating inflows, consistent with other cash flows related to income taxes. Previously, windfalls were classified as financing activities. This guidance affects the dilutive effects in earnings per share, as there will

no

longer be excess tax benefits recognized in additional paid in capital. Previously those excess tax benefits were included in assumed proceeds from applying the treasury stock method when computing diluted EPS. Under the amended guidance, companies are able to make an accounting policy election to either (

1

) continue to estimate forfeitures or (

2

) account for forfeitures as they occur. This updated guidance is effective for annual and interim periods beginning after

December 15, 2016.

The adoption of this guidance did

not

have a material impact on the Company’s consolidated financial statements.

Interests Held through Related Parties that are under Common Control

In

October 2016,

the FASB issued ASU

2016

-

17,

Consolidation (Topic

810

): Interests held through Related Parties that are under Common Control. The amendments in this update require that if a decision maker is required to evaluate whether it is the primary beneficiary of a VIE, it will need to consider only its proportionate indirect interest in the VIE held through a common control party. The amendments in this update should be applied retrospectively for each period presented and are effective for financial statements issued for fiscal years beginning after

December 15, 2016,

and interim periods within those fiscal years. The adoption of this guidance did

not

have a material impact on the Company’s consolidated financial statements.

Simplifying the Measurement of Inventory

In

July 2015,

the FASB issued ASU

2015

-

11,

Simplifying the Measurement of Inventory, Topic

330.

The update contains

no

amendments to disclosure requirements, but replaces the concept of ‘lower of cost or market’ with that of ‘lower of cost and net realizable value’. The amendments in this update are effective for annual reporting periods beginning after

December 15, 2016,

including interim periods within those reporting periods. The amendments should be applied prospectively with early adoption permitted. The adoption of this guidance did

not

have a material impact on the Company’s consolidated financial statements.

New accounting pronouncements effective in future periods

Intangibles –Goodwill and Other

In

January 2017,

the FASB issued ASU

2017

-

04,

Intangibles – Goodwill and Other (Topic

350

). The amendments in this Update require the entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, however, the loss recognized should

not

exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider the income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. This Update, eliminated Step

2

from the goodwill impairment test under the current guidance. Step

2

measures a goodwill impairment loss by comparing the implied fair value of reporting unit’s goodwill with the carrying amount of that goodwill. The amendments in this Update should be applied on a prospective basis. An entity is also required to disclose the nature of and the reason for the change in accounting principal upon transition. That disclosure should be provided in the

first

annual period and the interim period within the

first

annual period when the entity initially adopts the amendments in this Update. The amendments in this Update are effective for the annual or any interim goodwill impairment tests in fiscal years beginning after

December 15, 2019.

Early adoption is permitted for interim or annual impairment tests performed on testing dates after

January 1, 2017.

The Company is currently evaluating the potential impact of the adoption of these amendments on its consolidated financial statements.

Compensation - Stock Compensation

In

May 2017,

the FASB issued ASU

2017

-

09,

Compensation—Stock Compensation (Topic

718

). The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic

718.

The amendments in this update require that an entity should account for the effects of a modification unless all of the following are met: (

1

) The fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (

2

) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; (

3

) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic

718

apply regardless of whether an entity is required to apply modification accounting under the amendments in this Update. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after

December 15, 2017.

Early adoption is permitted. The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. The Company is currently evaluating the potential impact of the adoption of these amendments on its consolidated financial statements.

Business Combinations

In

January 2017,

the FASB issued ASU

2017

-

01,

Business Combinations (Topic

805

). The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update primarily provide a screen to determine when a set of assets and activities is

not

a business and by that reduces the number of transactions that need to be further evaluated. The amendments in this update should be applied prospectively and are effective for financial statements issued for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the potential impact of the adoption of these amendments on its consolidated financial statements.

Statement of Cash Flows

In

November 2016,

the FASB issued ASU

2016

-

18,

Statement of Cash Flows (Topic

230

) – Restricted Cash. The amendments in this update require that a statement of cash flows explain the changes during the period in total cash, cash equivalents, and the amounts generally described as restricted cash or cash equivalents. Therefore, amounts of restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this update should be applied retrospectively for each period presented and are effective for financial statements issued for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the potential impact of the adoption of these amendments on its consolidated financial statements.

Intra-Entity Transfers of Assets Other than Inventory

In

October 2016,

the FASB issued ASU

2016

-

16,

Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. The amendments in this update require that the entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. The new guidance does

not

apply to intra-entity transfers on inventory. The amendments in this update should be applied for each period presented and are effective for financial statements issued for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years. The modified retrospective approach will be required for transition to the new guidance, with cumulative-effect adjustment recorded in retained earnings as of the beginning of the period of adoption. Early adoption is permitted in the

first

quarter of

2017.

The Company is currently evaluating the potential impact of the adoption of these amendments on its consolidated financial statements.

Revenues from Contracts with Customers

In

May 2014,

the FASB issued ASU

2014

-

09,

Revenues from Contracts with Customers, Topic

606,

which was a joint project of the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The update provides that an entity should recognize revenue in connection with the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, an entity is required to apply each of the following steps: (

1

) identify the contract(s) with the customer; (

2

) identify the performance obligations in the contracts; (

3

) determine the transaction price; (

4

) allocate the transaction price to the performance obligation in the contract; and (

5

) recognize revenue when (or as) the entity satisfies a performance obligation. ASU

2014

-

09

also prescribes additional financial presentations and disclosures. The amendments in this update are effective for annual reporting periods beginning after

December 15, 2017,

including interim periods within those reporting periods. Early adoption is permitted

no

earlier than

2017

for calendar fiscal year entities. The Company expects the adoption of this standard to have an immaterial impact, if any, on its Electricity segment as it accounts for its PPA’s under ASC

840,

Leases. The Company is still evaluating the potential impact of the adoption of the standard on its Product segment, however, it believes that such impact, if any, will be immaterial.

In

March 2016,

the FASB issued ASU

2016

-

08,

Principal versus Agent Considerations. This update does

not

change the core principles of the guidance and is intended to clarify the implementation guidance on principal versus agent considerations. When another entity is involved in providing goods or services to a customer, an entity is required to determine if the nature of its promise is to provide the specific good or service itself (that is, the entity is a principal) or to arrange for that good or service to be provided by the other party (that is, the entity is an agent). The guidance includes indicators to assist an entity in determining whether it acts as a principal or agent in a specified transaction. The amendments in this update are effective for annual reporting periods beginning after

December 15, 2017,

including interim periods within those reporting periods. Early adoption is permitted

no

earlier than

2017

for calendar fiscal year entities. The Company is currently evaluating the potential impact, if any, of the adoption of these amendments on its consolidated financial statements, however, it believes that any such impact, if any, will be immaterial.

Leases

In

February 2016,

the FASB issued ASU

2016

-

02,

Leases, Topic

842.

This update introduces a number of changes and simplifies previous guidance, primarily the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. The Update retains the distinction between finance leases and operating leases and the classification criteria between the

two

types remains substantially similar. Also, lessor accounting remains largely unchanged from previous guidance. However, key aspects of the Update were aligned with the revenue recognition guidance in Topic

606.

Additionally, the Update defines a lease as a contract, or part of a contract, that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of the identified asset means that the customer has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. The amendments in this update are effective for annual reporting periods beginning after

December 15, 2018,

including interim periods within those reporting periods. Early adoption is permitted. The Company is currently evaluating the potential impact, if any, of the adoption of these amendments on its consolidated financial statements.

Recognition and Measurement of Financial Assets and Financial Liabilities

In

January 2016,

the FASB issued ASU

2016

-

01,

Recognition and Measurement of Financial Assets and Financial Liabilities. The update primarily requires that an entity present separately, in other comprehensive income, the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk if the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The application of this update should be by means of cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments in this update are effective for financial statements issued for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years. Early adoption is permitted as of the beginning of the fiscal year of adoption. The Company is currently evaluating the potential impact, if any, of the adoption of this update on its consolidated financial statements.

Note 1 - General and Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]

	June 30, 2017									December 31, 2016
	As originally reported			Adjustments			As Restated			As originally reported			Adjustments			As Revised
Deferred income tax liabilities	$	44,113		$	28,198		$	72,311		$	35,382		$	1,029		$	36,411
Liability for unrecognized tax benefits		6,015			-			6,015			5,738			706			6,444
Total liabilities		1,277,136			28,198			1,305,334			1,286,790			1,735			1,288,525
Retained earnings		274,566			(27,806	)		246,760			216,644			(1,292	)		215,352
Accumulated other comprehensive loss		(6,933	)		(392	)		(7,325	)		(7,732	)		(443	)		(8,175	)
Total stockholders’ equity attributable to the Company’s stockholders		1,143,274			(28,198	)		1,115,076			1,078,425			(1,735	)		1,076,690
Total equity		1,227,599			(28,198	)		1,199,401			1,170,007			(1,735	)		1,168,272

	Three months ended June 30, 2017									Six months ended June 30, 2017
	As originally reported			Adjustments			As Restated			As originally reported			Adjustments			As Restated
Income tax provision	$	(6,369	)	$	(26,396	)	$	(32,765	)	$	(17,255	)	$	(26,514	)	$	(43,769	)
Income from continuing operations		38,242			(26,396	)		11,846			77,977			(26,514	)		51,463
Net income attributable to the Company’s stockholders		35,036			(26,396	)		8,640			70,348			(26,514	)		43,834
Loss in respect of derivative instruments designated for cash flow hedge		20			25			45			42			51			93
Comprehensive income		38,792			(26,371	)		12,421			79,172			(26,463	)		52,709
Comprehensive income attributable to the Company’s stockholders		35,179			(26,371	)		8,808			71,147			(26,463	)		44,684
Net income per share attributable to the Company’s stockholders
Basic:	$	0.70		$	(0.53	)	$	0.17		$	1.41		$	(0.53	)	$	0.88
Diluted:	$	0.69		$	(0.52	)	$	0.17		$	1.39		$	(0.52	)	$	0.87

	Three months ended June 30, 2016									Six months ended June 30, 2016
	As originally reported			Adjustments			As Revised			As originally reported			Adjustments			As Revised
Income tax provision	$	(7,890	)	$	(625	)	$	(8,515	)	$	(17,399	)	$	(195	)	$	(17,594	)
Income from continuing operations		24,933			(625	)		24,308			55,878			(195	)		55,683
Net income attributable to the Company’s stockholders		24,349			(625	)		23,724			53,620			(195	)		53,425
Loss in respect of derivative instruments designated for cash flow hedge		22			13			35			43			27			70
Comprehensive income		22,944			(612	)		22,332			50,707			(168	)		50,539
Comprehensive income attributable to the Company’s stockholders		22,360			(612	)		21,748			48,449			(168	)		48,281
Net income per share attributable to the Company’s stockholders
Basic:	$	0.49		$	(0.01	)	$	0.48		$	1.09		$	(0.01	)	$	1.08
Diluted:	$	0.49		$	(0.02	)	$	0.47		$	1.07		$	-		$	1.07

	As originally reported			Adjustments			As Revised
Balances as of December 31, 2015:
Retained earnings	$	148,396		$	3,930		$	152,326
Accumulated other comprehensive loss		(7,667	)		(497	)		(8,164	)
Total stockholders’ equity attributable to the Company’s stockholders		990,001			3,433			993,434
Total equity		1,083,874			3,433			1,087,307
Net income for the six months ended June 30, 2016		55,878			(195	)		55,683
Net income attributable to the Company’s stockholders for the six months ended June 30, 2016		53,620			(195	)		53,425
Loss in respect of derivative instruments designated for cash flow hedge for the six months ended June 30, 2016		43			27			70
Balances as of June 30, 2016:
Retained earnings		183,018			3,735			186,753
Accumulated other comprehensive loss		(12,838	)		(470	)		(13,308	)
Total stockholders’ equity attributable to the Company’s stockholders		1,027,056			3,265			1,030,321
Total equity		1,117,435			3,265			1,120,700

	As originally reported			Adjustments			As Restated
Balances as of December 31, 2016:
Retained earnings	$	216,644		$	(1,292	)	$	215,352
Accumulated other comprehensive loss		(7,732	)		(443	)		(8,175	)
Total stockholders’ equity attributable to the Company stockholders		1,078,425			(1,735	)		1,076,690
Total equity		1,170,007			(1,735	)		1,168,272
Net income for the six months ended June 30, 2017		77,289			(26,514	)		50,775
Net income attributable to the Company’s stockholders for the six months ended June 30, 2017		70,348			(26,514	)		43,834
Loss in respect of derivative instruments designated for cash flow hedge for the six months ended June 30, 2017		42			51			93
Balances as of June 30, 2017:
Retained earnings		274,566			(27,806	)		246,760
Accumulated other comprehensive loss		(6,933	)		(392	)		(7,325	)
Total stockholders’ equity attributable to the Company’s stockholders		1,143,274			(28,198	)		1,115,076
Total equity		1,227,599			(28,198	)		1,199,401

	Six months ended June 30, 2017							Six months ended June 30, 2016
	As previously reported		Adjustments			As Restated		As previously reported			Adjustments			As Revised
Cash flows from operating activities:
Net income	$	77,977	$	(26,514	)	$	51,463	$	55,878		$	(195	)	$	55,683
Deferred income tax provision		8,375		26,396			34,771		13,254			-			13,254
Liability for unrecognized tax benefits		277		118			395		(411	)		195			(216	)
Net cash provided by operating activities		114,158		-			114,158		119,573			-			119,573

Note 3 - Inventories (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Inventory, Current [Table Text Block]

	June 30,		December 31,
	2017		2016
	(Dollars in thousands)
Raw materials and purchased parts for assembly	$	11,486	$	5,429
Self-manufactured assembly parts and finished products		7,083		6,571
Total	$	18,569	$	12,000

Note 4 - Unconsolidated Investments (Tables)

6 Months Ended

Jun. 30, 2017

Equity Method Investments [Table Text Block]

	June 30,		December 31,
	2017		2016
	(Dollars in thousands)
Sarulla	$	13,957	$	(11,081	)

Note 5 - Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value, by Balance Sheet Grouping [Table Text Block]

				June 30, 2017
				Fair Value
	Carrying Value at June 30, 2017			Total			Level 1		Level 2		Level 3
	(Dollars in thousands)
Assets:
Current assets:
Cash equivalents (including restricted cash accounts)	$	17,378		$	17,378		$	17,378	$	—	$	—
Derivatives:
Put options on gas price (3)		251			251			—		251		—
Contingent receivable (1)		1,088			1,088			—		—		1,088
Currency forward contracts (2)		2,007			2,007			—		2,007		—
Liabilities:
Current liabilities:
Derivatives:
Contingent payables (1)		(25,486	)		(25,486	)		—		—		(25,486	)
Warrants (1)		(3,753	)		(3,753	)		—		—		(3,753	)
Total, net	$	(8,515	)	$	(8,515	)	$	17,378	$	2,258	$	(28,151	)

				December 31, 2016
				Fair Value
	Carrying Value at December 31, 2016			Total			Level 1		Level 2			Level 3
	(Dollars in thousands)
Assets
Current assets:
Cash equivalents (including restricted cash accounts)	$	14,922		$	14,922		$	14,922	$	—		$	—
Derivatives:
Contingent receivable (1)		1,443			1,443			—		—			1,443
Liabilities:
Current liabilities:
Derivatives:
Contingent payables (1)		(11,581	)		(11,581	)		—		—			(11,581	)
Warrants (1)		(3,429	)		(3,429	)		—		—			(3,429	)
Currency forward contracts (2)		(481	)		(481	)		—		(481	)		—
Total, net	$	874		$	874		$	14,922	$	(481	)	$	(13,567	)

Derivative Instruments, Gain (Loss) [Table Text Block]

		Amount of recognized gain (loss)
Derivatives not designated as	Location of recognized gain	Three Months Ended June 30,						Six Months Ended June 30,
hedging instruments	(loss)	2017			2016			2017			2016

Put options on natural gas price	Derivatives and foreign currency transaction gains (losses)		(48	)		—			(241	)		—
Call options on natural gas price	Derivatives and foreign currency transaction gains (losses)		—			(1,664	)		—			(1,146	)
Call and put options on oil price	Derivatives and foreign currency transaction gains (losses)		—			(899	)		—			(1,542	)
Contingent considerations	Derivative and foreign currency transaction gains (losses)		(45	)		—			(95	)		—
Currency forward contracts	Derivative and foreign currency and transaction gains (losses)		1,457			(1,349	)		3,719			465
		$	1,364		$	(3,912	)	$	3,383		$	(2,223	)

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

	Fair Value				Carrying Amount
	June 30, 2017		December 31, 2016		June 30, 2017		December 31, 2016
	(Dollars in millions)				(Dollars in millions)
Olkaria III Loan - DEG	$	12.5	$	16.3	$	11.8	$	15.8
Olkaria III Loan - OPIC		247.8		253.4		237.6		246.6
Olkaria IV Loan - DEG 2		51.7		50.9		50.0		50.0
Amatitlan Loan		35.1		37.3		35.0		36.8
Senior Secured Notes:
Ormat Funding Corp. ("OFC")		14.3		17.0		14.3		17.0
OrCal Geothermal Inc. ("OrCal")		33.8		37.4		32.1		35.2
OFC 2 LLC ("OFC 2")		245.1		249.0		238.9		247.2
Don A. Campbell 1 ("DAC1")		88.7		88.9		90.2		92.4
Senior Unsecured Bonds		203.3		200.1		204.3		204.3
Other long-term debt		8.9		10.4		9.7		11.2

Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block]

	Level 1		Level 2		Level 3		Total
	(Dollars in millions)
Olkaria III - DEG	$	—	$	—	$	12.5	$	12.5
Olkaria III - OPIC		—		—		247.8		247.8
Olkaria IV - DEG 2		—		—		51.7		51.7
Amatitlan Loan		—		35.1		—		35.1
Senior Secured Notes:
OFC		—		14.3		—		14.3
OrCal		—		—		33.8		33.8
OFC 2		—		—		245.1		245.1
Don A. Campbell 1 ("DAC1")		—		—		88.7		88.7
Senior Unsecured Bonds		—		—		203.3		203.3
Other long-term debt		—		1.7		7.2		8.9
Revolving lines of credit		—		30.0		—		30.0
Deposits		15.9		—		—		15.9

	Level 1		Level 2		Level 3		Total
	(Dollars in millions)
Olkaria III Loan - DEG	$	—	$	—	$	16.3	$	16.3
Olkaria III Loan - OPIC		—		—		253.4		253.4
Olkaria IV - DEG 2						50.9		50.9
Amatitlan Loan		—		37.3		—		37.3
Senior Secured Notes:
OFC		—		17.0		—		17.0
OrCal		—		—		37.4		37.4
OFC 2		—		—		249.0		249.0
Don A. Campbell 1 ("DAC1")		—		—		88.9		88.9
Senior Unsecured Bonds		—		—		200.1		200.1
Other long-term debt		—		3.3		7.1		10.4
Deposits		14.4		—		—		14.4

Note 7 - Interest Expense, Net (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Other Nonoperating Expense, by Component [Table Text Block]

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016

Interest related to sale of tax benefits	$	1,849		$	2,846		$	3,861		$	3,704
Interest expense		14,146			15,863			28,321			31,488
Less — amount capitalized		(1,455	)		(308	)		(2,719	)		(768	)
	$	14,540		$	18,401		$	29,463		$	34,424

Note 8 - Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Weighted Average Number of Shares [Table Text Block]

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016

Weighted average number of shares used in computation of basic earnings per share		49,771		49,456		49,726		49,314
Add:
Additional shares from the assumed exercise of employee stock options		853		681		833		663

Weighted average number of shares used in computation of diluted earnings per share		50,624		50,137		50,559		49,977

Note 9 - Business Segments (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Electricity		Product		Consolidated
	(Dollars in thousands)
Three Months Ended June 30, 2017:
Net revenue from external customers	$	111,777	$	67,587	$	179,364
Intersegment revenue		—		16,565		16,565
Operating income		36,117		17,035		53,152
Segment assets at period end (1)		2,323,618		187,015		2,510,633

Three Months Ended June 30, 2016:
Net revenue from external customers	$	104,001	$	55,860	$	159,861
Intersegment revenue		—		19,266		19,266
Operating income		32,814		19,073		51,887
Segment assets at period end		2,031,650		241,363		2,273,013

Six Months Ended June 30, 2017:
Net revenues from external customers	$	227,553	$	141,709	$	369,262
Intersegment revenues		—		32,778		32,778
Operating income		77,015		35,633		112,648
Segment assets at period end (1)		2,323,618		187,015		2,510,633

Six Months Ended June 30, 2016:
Net revenues from external customers	$	211,869	$	99,586	$	311,455
Intersegment revenues		—		21,206		21,206
Operating income		67,599		34,831		102,430
Segment assets at period end		2,031,650		241,363		2,273,013

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016

Revenue:
Total segment revenue	$	179,364		$	159,861		$	369,262		$	311,455
Intersegment revenue		16,565			19,266			32,778			21,206
Elimination of intersegment revenue		(16,565	)		(19,266	)		(32,778	)		(21,206	)
Total consolidated revenue	$	179,364		$	159,861		$	369,262		$	311,455

Operating income:
Operating income	$	53,152		$	51,887		$	112,648		$	102,430
Interest income		362			245			606			565
Interest expense, net		(14,540	)		(18,401	)		(29,463	)		(34,424	)
Derivatives and foreign currency transaction gains (losses)		1,703			(4,332	)		3,041			(2,370	)
Income attributable to sale of tax benefits		4,356			4,519			10,513			8,917
Other non-operating income (expense), net		6			49			(86	)		240
Total consolidated income before income taxes and equity in income of investees	$	45,039		$	33,967		$	97,259		$	75,358

Note 1 - General and Basis of Presentation (Details Textual)			3 Months Ended				6 Months Ended		12 Months Ended
	Mar. 15, 2017 USD ($)	Dec. 29, 2016 USD ($)	Jun. 30, 2017 USD ($) MWh $ / MWh	Mar. 31, 2017 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Jun. 30, 2017 USD ($) $ / MWh	Jun. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)	Jan. 01, 2016 USD ($)	Dec. 31, 2015 USD ($)
Net Income (Loss) Attributable to Parent, Total			$ 8,640,000		$ 23,724,000		$ 43,834,000	$ 53,425,000
Income Tax Expense (Benefit), Total			32,765,000		8,515,000		43,769,000	17,594,000
Retained Earnings (Accumulated Deficit), Ending Balance			246,760,000		186,753,000		246,760,000	186,753,000	$ 215,352,000		$ 152,326,000
Goodwill, Ending Balance			20,121,000				20,121,000		6,650,000
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			1,000		2,000		3,000	5,000
Interest Expense, Total			14,540,000		18,401,000		29,463,000	34,424,000
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total			(7,325,000)		(13,308,000)		(7,325,000)	(13,308,000)	(8,175,000)		(8,164,000)
Exploration Abandonment and Impairment Expense			0		863,000		0	1,420,000
Cash, Cash Equivalents, and Short-term Investments, Total			118,390,000		192,556,000		118,390,000	192,556,000	230,214,000		185,919,000
Accounts Receivable, Net, Current, Total			79,587,000				79,587,000		$ 80,807,000
Provision for Doubtful Accounts							0
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total			12,421,000		22,332,000		52,709,000	50,539,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total			$ 11,846,000		$ 24,308,000		$ 51,463,000	$ 55,683,000
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Primary Customers [Member]
Concentration Risk, Percentage							55.00%		60.00%
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member] \| Sierra Pacific Power Company And Nevada Power Company [Member]
Concentration Risk, Percentage			16.70%		19.10%		17.80%	21.10%
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member] \| Kenya Power and Lighting Co LTD [Member]
Concentration Risk, Percentage			15.40%		17.10%		14.80%	17.20%
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member] \| Southern California Public Power Authority [Member]
Concentration Risk, Percentage			8.70%		10.40%		8.90%	11.20%
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member] \| Hyundai (Sarulla Goethermal Power Project) [Member]
Concentration Risk, Percentage			4.90%		8.60%		6.30%	9.00%
UNITED STATES
Cash, Cash Equivalents, and Short-term Investments, Total			$ 31,300,000				$ 31,300,000		$ 72,500,000
Foreign Countries [Member]
Cash, Cash Equivalents, and Short-term Investments, Total			99,900,000				99,900,000		166,200,000
Accounts Receivable, Net, Current, Total			53,500,000				53,500,000		53,300,000
Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total			(600,000)				(600,000)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Income Tax Expense (Benefit), Total			(1,000)		$ (4,000)		(2,000)	$ (5,000)
Interest Expense, Total			$ (3,000)		(6,000)		$ (5,000)	(10,000)
Viridity Energy, Inc. [Member]
Business Combination, Consideration Transferred, Total		$ 35,300,000
Business Combination, Contingent Consideration, Liability, Total	$ 12,800,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total	$ 34,700,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	17 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Working Capital	$ 400,000
Goodwill, Ending Balance	$ 13,900,000
ONGP, LLC [Member] \| Southern California Public Power Authority [Member]
Power Purchase Agreements, Number of Power Plants Portfolio			9				9
Expected Power Generating Capacity \| MWh			150
Power Plant Usage Agreement Term			5 years
Power Purchase Agreements Term			26 years
Power Purchase Agreements, Fixed Price Per MWh \| $ / MWh			75.5				75.5
Restatement Adjustment [Member]
Net Income (Loss) Attributable to Parent, Total			$ (26,396,000)		(625,000)		$ (26,514,000)	(195,000)
Income Tax Expense (Benefit), Total			26,396,000	$ 100,000	625,000	$ (400,000)	26,514,000	195,000
Retained Earnings (Accumulated Deficit), Ending Balance			(27,806,000)		3,735,000		(27,806,000)	3,735,000	(1,292,000)	$ 3,900,000	3,930,000
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total			(392,000)		(470,000)		(392,000)	(470,000)	(443,000)		$ (497,000)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total			$ (26,371,000)	(100,000)	(612,000)	400,000	(26,463,000)	(168,000)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total				$ (100,000)	$ (600,000)	$ 400,000	(26,514,000)	$ (195,000)
Minimum [Member] \| Ormat Nevada ORTP LLC [Member] \| Southern California Public Power Authority [Member]
Expected Power Generating Capacity \| MWh			135
Maximum [Member]
Cash, FDIC Insured Amount			$ 250,000				$ 250,000		$ 250,000
Maximum [Member] \| Ormat Nevada ORTP LLC [Member] \| Southern California Public Power Authority [Member]
Expected Power Generating Capacity \| MWh			185
Foreign Tax Authority [Member] \| Minimum [Member]
Tax Credit Carryforward Expiration Year							2027

Note 1 - General and Basis of Presentation - Effect of Revision on Balance Sheet Line Items (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Jan. 01, 2016	Dec. 31, 2015
Deferred income tax liabilities	$ 72,311,000				$ 72,311,000		$ 36,411,000
Liability for unrecognized tax benefits	6,015,000				6,015,000		6,444,000
Total liabilities	1,305,334,000				1,305,334,000		1,288,525,000
Retained Earnings (Accumulated Deficit), Ending Balance	246,760,000		$ 186,753,000		246,760,000	$ 186,753,000	215,352,000		$ 152,326,000
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total	(7,325,000)		(13,308,000)		(7,325,000)	(13,308,000)	(8,175,000)		(8,164,000)
Total stockholders’ equity attributable to the Company’s stockholders	1,115,076,000		1,030,321,000		1,115,076,000	1,030,321,000	1,076,690,000		993,434,000
Total equity	1,199,401,000		1,120,700,000		1,199,401,000	1,120,700,000	1,168,272,000		1,087,307,000
Income tax provision	(32,765,000)		(8,515,000)		(43,769,000)	(17,594,000)
Income from continuing operations	11,846,000		24,308,000		51,463,000	55,683,000
Net Income (Loss) Attributable to Parent, Total	8,640,000		23,724,000		43,834,000	53,425,000
Loss in respect of derivative instruments designated for cash flow hedge	45,000		35,000		93,000	70,000
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total	12,421,000		22,332,000		52,709,000	50,539,000
Comprehensive income attributable to the Company’s stockholders	$ 8,808,000		$ 21,748,000		$ 44,684,000	$ 48,281,000
Basic: (in dollars per share)	$ 0.17		$ 0.48		$ 0.88	$ 1.08
Diluted: (in dollars per share)	$ 0.17		$ 0.47		$ 0.87	$ 1.07
Net income					$ 50,775,000	$ 55,683,000
Loss in respect of derivative instruments designated for cash flow hedge for the six months ended June 30, 2017	$ 45,000		$ 35,000		93,000	70,000
Net income	11,846,000		24,308,000		51,463,000	55,683,000
Deferred income tax provision					34,771,000	13,254,000
Liability for unrecognized tax benefits					395,000	(216,000)
Net cash provided by operating activities					114,158,000	119,573,000
Previously Reported [Member]
Deferred income tax liabilities	44,113,000				44,113,000		35,382,000
Liability for unrecognized tax benefits	6,015,000				6,015,000		5,738,000
Total liabilities	1,277,136,000				1,277,136,000		1,286,790,000
Retained Earnings (Accumulated Deficit), Ending Balance	274,566,000		183,018,000		274,566,000	183,018,000	216,644,000		148,396,000
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total	(6,933,000)		(12,838,000)		(6,933,000)	(12,838,000)	(7,732,000)		(7,667,000)
Total stockholders’ equity attributable to the Company’s stockholders	1,143,274,000		1,027,056,000		1,143,274,000	1,027,056,000	1,078,425,000		990,001,000
Total equity	1,227,599,000		1,117,435,000		1,227,599,000	1,117,435,000	1,170,007,000		1,083,874,000
Income tax provision	(6,369,000)		(7,890,000)		(17,255,000)	(17,399,000)
Income from continuing operations	38,242,000		24,933,000		77,977,000	55,878,000
Net Income (Loss) Attributable to Parent, Total	35,036,000		24,349,000		70,348,000	53,620,000
Loss in respect of derivative instruments designated for cash flow hedge	20,000		22,000		42,000	43,000
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total	38,792,000		22,944,000		79,172,000	50,707,000
Comprehensive income attributable to the Company’s stockholders	$ 35,179,000		$ 22,360,000		$ 71,147,000	$ 48,449,000
Basic: (in dollars per share)	$ 0.70		$ 0.49		$ 1.41	$ 1.09
Diluted: (in dollars per share)	$ 0.69		$ 0.49		$ 1.39	$ 1.07
Net income					$ 77,289,000	$ 55,878,000
Loss in respect of derivative instruments designated for cash flow hedge for the six months ended June 30, 2017	$ 20,000		$ 22,000		42,000	43,000
Net income					77,977,000	55,878,000
Deferred income tax provision					8,375,000	13,254,000
Liability for unrecognized tax benefits					277,000	(411,000)
Net cash provided by operating activities					114,158,000	119,573,000
Restatement Adjustment [Member]
Deferred income tax liabilities	28,198,000				28,198,000		1,029,000
Liability for unrecognized tax benefits							706,000
Total liabilities	28,198,000				28,198,000		1,735,000
Retained Earnings (Accumulated Deficit), Ending Balance	(27,806,000)		3,735,000		(27,806,000)	3,735,000	(1,292,000)	$ 3,900,000	3,930,000
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total	(392,000)		(470,000)		(392,000)	(470,000)	(443,000)		(497,000)
Total stockholders’ equity attributable to the Company’s stockholders	(28,198,000)		3,265,000		(28,198,000)	3,265,000	(1,735,000)		3,433,000
Total equity	(28,198,000)		3,265,000		(28,198,000)	3,265,000	$ (1,735,000)		$ 3,433,000
Income tax provision	(26,396,000)	$ (100,000)	(625,000)	$ 400,000	(26,514,000)	(195,000)
Income from continuing operations	(26,396,000)		(625,000)		(26,514,000)	(195,000)
Net Income (Loss) Attributable to Parent, Total	(26,396,000)		(625,000)		(26,514,000)	(195,000)
Loss in respect of derivative instruments designated for cash flow hedge	25,000		13,000		51,000	27,000
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total	(26,371,000)	(100,000)	(612,000)	400,000	(26,463,000)	(168,000)
Comprehensive income attributable to the Company’s stockholders	$ (26,371,000)		$ (612,000)		$ (26,463,000)	$ (168,000)
Basic: (in dollars per share)	$ (0.53)		$ (0.01)		$ (0.53)	$ (0.01)
Diluted: (in dollars per share)	$ (0.52)		$ (0.02)		$ (0.52)
Net income					$ (26,514,000)	$ (195,000)
Loss in respect of derivative instruments designated for cash flow hedge for the six months ended June 30, 2017	$ 25,000		$ 13,000		51,000	27,000
Net income		$ (100,000)	$ (600,000)	$ 400,000	(26,514,000)	(195,000)
Deferred income tax provision					26,396,000
Liability for unrecognized tax benefits					118,000	195,000
Net cash provided by operating activities

Note 3 - Inventories - Inventories, Current (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Raw materials and purchased parts for assembly	$ 11,486	$ 5,429
Self-manufactured assembly parts and finished products	7,083	6,571
Total	$ 18,569	$ 12,000

Note 4 - Unconsolidated Investments (Details Textual) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 04, 2014 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) MWh	Jun. 30, 2016 USD ($)	Dec. 31, 2014 USD ($)	May 23, 2014 USD ($)	May 16, 2014 USD ($)
Number of Commercial Lenders in Funding Consortium								6
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax		$ (916)	$ (1,987)	$ (347)	$ (5,166)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total		$ 11,846	24,308	$ 51,463	55,683
Intersegment Eliminations [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total						$ 14,100
Sarulla [Member] \| Lenders Consortium [Member]
Senior Notes, Total								$ 1,170,000
Sarulla [Member]
Jointly Owned Utility Plant, Proportionate Ownership Share		12.75%		12.75%
Expected Power Generating Capacity \| MWh				330
Power Plant Usage Agreement Term				30 years
Number of Phases of Construction				3
Power Utilization \| MWh				110
Percentage of Required Production Capacity		100.00%		100.00%
Percentage of Required Injection Capacity		90.00%		90.00%
Supply Commitment, Remaining Minimum Amount Committed						$ 255,600
Payments to Acquire Projects		$ 12,500		$ 27,400
Accumulated Cash Contributions to Acquire Projects		39,300		39,300
Sarulla [Member] \| Interest Rate Swap [Member]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax		(900)	(2,000)	(300)	(5,200)
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax, Ending Balance		6,300		6,300
Sarulla [Member] \| Interest Rate Swap [Member] \| Sarulla Project Company [Member]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax		$ (7,200)	$ (15,600)	$ (2,700)	$ (40,500)
Sarulla [Member] \| Lenders Consortium [Member] \| Interest Rate Swap [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	3.4565%
Sarulla [Member] \| Lenders Consortium [Member] \| Subject to Fixed Interest Rate [Member]
Senior Notes, Total							$ 100,000
Sarulla [Member] \| Lenders Consortium [Member] \| Subject to Fixed LIBOR Interest Rate [Member]
Senior Notes, Total							$ 1,070,000
Sarulla [Member] \| Lenders Consortium [Member] \| Subject to Fixed LIBOR Interest Rate [Member] \| Interest Rate Swap [Member]
Senior Notes, Total	$ 960,000

Note 4 - Unconsolidated Investments - Unconsolidated Investments Mainly in Power Plants (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Sarulla		$ (11,081)
Sarulla [Member]
Sarulla	$ 13,957	$ (11,081)

Note 5 - Fair Value of Financial Instruments (Details Textual) BTU in Millions, $ in Millions				1 Months Ended
	Jan. 12, 2017 USD ($) BTU $ / item	Feb. 24, 2016 USD ($) Boe $ / item	Feb. 02, 2016 USD ($) BTU $ / item	Mar. 31, 2016 Boe $ / item	Feb. 28, 2016 $ / item
Derivative, Number of Options Rolled				2
Henry Hub Natural Gas Future ("NG") Contracts [Member] \| Put Option [Member]
Derivative, Nonmonetary Notional Amount, Energy Measure \| BTU	4.1
Derivative, Price Risk Option Strike Price	3
Payments for Derivative Instrument, Investing Activities \| $	$ 0.7
Henry Hub Natural Gas Future ("NG") Contracts [Member] \| Call Option [Member]
Derivative, Nonmonetary Notional Amount, Energy Measure \| BTU			4.1
Derivative, Price Risk Option Strike Price			2
Proceeds from Derivative Instrument, Investing Activities \| $			$ 1.9
Brent Oil Future Contracts [Member]
Derivative, Nonmonetary Notional Amount, Energy Measure \| Boe		185,000
Brent Oil Future Contracts [Member] \| Minimum [Member]
Derivative, Price Risk Option Strike Price		32.8
Brent Oil Future Contracts [Member] \| Maximum [Member]
Derivative, Price Risk Option Strike Price		35.5
Brent Oil Future Contracts [Member] \| Call Option [Member]
Proceeds from Derivative Instrument, Investing Activities \| $		$ 1.1
Rolled Two Existing Options [Member]
Derivative, Nonmonetary Notional Amount, Energy Measure \| Boe				31,800
Rolled Two Existing Options [Member] \| Minimum [Member]
Derivative, Price Risk Option Strike Price				41
Rolled Two Existing Options [Member] \| Maximum [Member]
Derivative, Price Risk Option Strike Price				42.5
Before Rolling Two Existing Options [Member] \| Minimum [Member]
Derivative, Price Risk Option Strike Price					32.8
Before Rolling Two Existing Options [Member] \| Maximum [Member]
Derivative, Price Risk Option Strike Price					33.5
Short Risk Reversal Transactions, Rolling Existing Call Option 1 [Member]
Derivative, Nonmonetary Notional Amount, Energy Measure \| Boe				16,500
Short Risk Reversal Transactions, Rolling Existing Call Option 1 [Member] \| Minimum [Member]
Derivative, Price Risk Option Strike Price				28.5
Short Risk Reversal Transactions, Rolling Existing Call Option 1 [Member] \| Maximum [Member]
Derivative, Price Risk Option Strike Price				37.5
Short Risk Reversal Transactions, Rolling Existing Call Option 2 [Member]
Derivative, Nonmonetary Notional Amount, Energy Measure \| Boe				17,000
Short Risk Reversal Transactions, Rolling Existing Call Option 2 [Member] \| Minimum [Member]
Derivative, Price Risk Option Strike Price				28
Short Risk Reversal Transactions, Rolling Existing Call Option 2 [Member] \| Maximum [Member]
Derivative, Price Risk Option Strike Price				38.5

Note 5 - Fair Value of Financial Instruments - Financial Assets and Liabilities at Fair Value (Details) - USD ($)
$ in Thousands

Jun. 30, 2017

Dec. 31, 2016

Reported Value Measurement [Member]

Cash equivalents (including restricted cash accounts)

$ 17,378

$ 14,922

^[1]

251

Reported Value Measurement [Member] | Contingent Receivable [Member]

(8,515)

874

Reported Value Measurement [Member] | Contingent Payable [Member]

^[2]

1,088

1,443

Reported Value Measurement [Member] | Currency Forward Contracts [Member]

^[2]

(25,486)

(11,581)

^[3]

2,007

Reported Value Measurement [Member] | Warrant [Member]

^[3]

(481)

Estimate of Fair Value Measurement [Member]

^[2]

(3,753)

(3,429)

Cash equivalents (including restricted cash accounts)

17,378

14,922

^[1]

251

Estimate of Fair Value Measurement [Member] | Contingent Receivable [Member]

(8,515)

874

Estimate of Fair Value Measurement [Member] | Contingent Payable [Member]

^[2]

1,088

1,443

Estimate of Fair Value Measurement [Member] | Currency Forward Contracts [Member]

^[2]

(25,486)

(11,581)

^[3]

2,007

Estimate of Fair Value Measurement [Member] | Warrant [Member]

^[3]

(481)

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]

^[2]

(3,753)

(3,429)

Cash equivalents (including restricted cash accounts)

17,378

14,922

^[1]

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Contingent Receivable [Member]

17,378

14,922

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Contingent Payable [Member]

^[2]

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Currency Forward Contracts [Member]

^[2]

^[3]

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Warrant [Member]

^[3]

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]

^[2]

Cash equivalents (including restricted cash accounts)

^[1]

251

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Contingent Receivable [Member]

2,258

(481)

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Contingent Payable [Member]

^[2]

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Currency Forward Contracts [Member]

^[2]

^[3]

2,007

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Warrant [Member]

^[3]

(481)

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]

^[2]

Cash equivalents (including restricted cash accounts)

^[1]

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Receivable [Member]

(28,151)

(13,567)

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Payable [Member]

^[2]

1,088

1,443

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Currency Forward Contracts [Member]

^[2]

(25,486)

(11,581)

^[3]

Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Warrant [Member]

^[3]

^[2]

$ (3,753)

$ (3,429)

[1]	These amounts relate to natural gas put options, valued primarily based on observable inputs, including spot prices on related commodity indices, and are included within Prepaid expenses and other on June 30, 2017 in the consolidated balance sheets with the corresponding gain or loss being recognized within Derivatives and foreign currency transaction gains (losses) in the consolidated statement of operations and comprehensive income.
[2]	These amounts relate to contingent receivables and payables relating to the Viridity acquisition and Guadeloupe power plant purchase transaction, valued primarily based on unobservable inputs and are included within Prepaid expenses and other, Accounts payable and accrued expenses and Other long-term liabilities on June 30, 2017 and within Prepaid expenses and other and Other long-term liabilities on December 31, 2016 in the consolidated balance sheets with the corresponding gain or loss being recognized within Derivatives and foreign currency transaction gains (losses) in the consolidated statement of operations and comprehensive income.
[3]	These amounts relate to currency forward contracts valued primarily based on observable inputs, including forward and spot prices for currencies, net of contracted rates and then multiplied by notional amounts, and are included within Prepaid expenses and other and Accounts payable and accrued expenses on June 30, 2017 and December 31, 2016, in the consolidated balance sheet with the corresponding gain or loss being recognized within Derivatives and foreign currency transaction gains (losses) in the consolidated statement of operations and comprehensive income.

Note 5 - Fair Value of Financial Instruments - Amounts of Gain (Loss) Recognized in Condensed Consolidated Statements on Derivative Instruments Not Designated as Hedges (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Amount of gain (loss) recognized	$ 1,364	$ (3,912)	$ 3,383	$ (2,223)
Foreign Currency Gain (Loss) [Member] \| Put Options on Natural Gas Price [Member]
Amount of gain (loss) recognized	(48)		(241)
Foreign Currency Gain (Loss) [Member] \| Call Option on Natural Gas Price [Member]
Amount of gain (loss) recognized		(1,664)		(1,146)
Foreign Currency Gain (Loss) [Member] \| Call and Put Options on Oil Price [Member]
Amount of gain (loss) recognized		(899)		(1,542)
Foreign Currency Gain (Loss) [Member] \| Contingent Considerations [Member]
Amount of gain (loss) recognized	(45)		(95)
Foreign Currency Gain (Loss) [Member] \| Currency Forward Contracts [Member]
Amount of gain (loss) recognized	$ 1,457	$ (1,349)	$ 3,719	$ 465

Note 5 - Fair Value of Financial Instruments - Fair Value of Long-term Debt Approximates Its Carrying Amount, Exceptions (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Estimate of Fair Value Measurement [Member]
Fair value levels-secured, unsecured and long term debt	$ 8.9	$ 10.4
Reported Value Measurement [Member]
Fair value levels-secured, unsecured and long term debt	9.7	11.2
Olkaria III DEG [Member]
Fair value levels-secured, unsecured and long term debt	12.5	16.3
Olkaria III DEG [Member] \| Estimate of Fair Value Measurement [Member]
Loans	12.5	16.3
Olkaria III DEG [Member] \| Reported Value Measurement [Member]
Loans	11.8	15.8
Olkaria III OPIC [Member]
Fair value levels-secured, unsecured and long term debt	247.8	253.4
Olkaria III OPIC [Member] \| Estimate of Fair Value Measurement [Member]
Loans	247.8	253.4
Olkaria III OPIC [Member] \| Reported Value Measurement [Member]
Loans	237.6	246.6
Olkaria IV Loan - DEG 2 [Member]
Fair value levels-secured, unsecured and long term debt	51.7	50.9
Olkaria IV Loan - DEG 2 [Member] \| Estimate of Fair Value Measurement [Member]
Loans	51.7	50.9
Olkaria IV Loan - DEG 2 [Member] \| Reported Value Measurement [Member]
Loans	50.0	50.0
Amatitlan Loan [Member]
Fair value levels-secured, unsecured and long term debt	35.1	37.3
Amatitlan Loan [Member] \| Estimate of Fair Value Measurement [Member]
Loans	35.1	37.3
Amatitlan Loan [Member] \| Reported Value Measurement [Member]
Loans	35.0	36.8
Ormat Funding Corp [Member]
Fair value levels-secured, unsecured and long term debt	14.3	17.0
Ormat Funding Corp [Member] \| Estimate of Fair Value Measurement [Member]
Notes	14.3	17.0
Ormat Funding Corp [Member] \| Reported Value Measurement [Member]
Notes	14.3	17.0
OrCal Geothermal Inc [Member]
Fair value levels-secured, unsecured and long term debt	33.8	37.4
OrCal Geothermal Inc [Member] \| Estimate of Fair Value Measurement [Member]
Notes	33.8	37.4
OrCal Geothermal Inc [Member] \| Reported Value Measurement [Member]
Notes	32.1	35.2
OFC Two Senior Secured Notes [Member]
Fair value levels-secured, unsecured and long term debt	245.1	249.0
OFC Two Senior Secured Notes [Member] \| Estimate of Fair Value Measurement [Member]
Notes	245.1	249.0
OFC Two Senior Secured Notes [Member] \| Reported Value Measurement [Member]
Notes	238.9	247.2
Don A. Campbell 1 ("DAC1") [Member]
Fair value levels-secured, unsecured and long term debt	88.7	88.9
Don A. Campbell 1 ("DAC1") [Member] \| Estimate of Fair Value Measurement [Member]
Notes	88.7	88.9
Don A. Campbell 1 ("DAC1") [Member] \| Reported Value Measurement [Member]
Notes	90.2	92.4
Senior Unsecured Bonds [Member]
Fair value levels-secured, unsecured and long term debt	203.3	200.1
Senior Unsecured Bonds [Member] \| Estimate of Fair Value Measurement [Member]
Senior Unsecured Bonds	203.3	200.1
Senior Unsecured Bonds [Member] \| Reported Value Measurement [Member]
Senior Unsecured Bonds	$ 204.3	$ 204.3

Note 5 - Fair Value of Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Revolving lines of credit	$ 30.0
Deposits	15.9	$ 14.4
Fair Value, Inputs, Level 1 [Member]
Revolving lines of credit
Deposits	15.9	14.4
Fair Value, Inputs, Level 2 [Member]
Revolving lines of credit	30.0
Deposits
Fair Value, Inputs, Level 3 [Member]
Revolving lines of credit
Deposits
Olkaria III DEG [Member]
Fair value levels-secured, unsecured and long term debt	12.5	16.3
Olkaria III DEG [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair value levels-secured, unsecured and long term debt
Olkaria III DEG [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair value levels-secured, unsecured and long term debt
Olkaria III DEG [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair value levels-secured, unsecured and long term debt	12.5	16.3
Olkaria III OPIC [Member]
Fair value levels-secured, unsecured and long term debt	247.8	253.4
Olkaria III OPIC [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair value levels-secured, unsecured and long term debt
Olkaria III OPIC [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair value levels-secured, unsecured and long term debt
Olkaria III OPIC [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair value levels-secured, unsecured and long term debt	247.8	253.4
Olkaria IV Loan - DEG 2 [Member]
Fair value levels-secured, unsecured and long term debt	51.7	50.9
Olkaria IV Loan - DEG 2 [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair value levels-secured, unsecured and long term debt
Olkaria IV Loan - DEG 2 [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair value levels-secured, unsecured and long term debt
Olkaria IV Loan - DEG 2 [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair value levels-secured, unsecured and long term debt	51.7	50.9
Amatitlan Loan [Member]
Fair value levels-secured, unsecured and long term debt	35.1	37.3
Amatitlan Loan [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair value levels-secured, unsecured and long term debt
Amatitlan Loan [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair value levels-secured, unsecured and long term debt	35.1	37.3
Amatitlan Loan [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair value levels-secured, unsecured and long term debt
Ormat Funding Corp [Member]
Fair value levels-secured, unsecured and long term debt	14.3	17.0
Ormat Funding Corp [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair value levels-secured, unsecured and long term debt
Ormat Funding Corp [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair value levels-secured, unsecured and long term debt	14.3	17.0
Ormat Funding Corp [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair value levels-secured, unsecured and long term debt
OrCal Geothermal Inc [Member]
Fair value levels-secured, unsecured and long term debt	33.8	37.4
OrCal Geothermal Inc [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair value levels-secured, unsecured and long term debt
OrCal Geothermal Inc [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair value levels-secured, unsecured and long term debt
OrCal Geothermal Inc [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair value levels-secured, unsecured and long term debt	33.8	37.4
OFC Two Senior Secured Notes [Member]
Fair value levels-secured, unsecured and long term debt	245.1	249.0
OFC Two Senior Secured Notes [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair value levels-secured, unsecured and long term debt
OFC Two Senior Secured Notes [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair value levels-secured, unsecured and long term debt
OFC Two Senior Secured Notes [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair value levels-secured, unsecured and long term debt	245.1	249.0
Don A. Campbell 1 ("DAC1") [Member]
Fair value levels-secured, unsecured and long term debt	88.7	88.9
Don A. Campbell 1 ("DAC1") [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair value levels-secured, unsecured and long term debt
Don A. Campbell 1 ("DAC1") [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair value levels-secured, unsecured and long term debt
Don A. Campbell 1 ("DAC1") [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair value levels-secured, unsecured and long term debt	88.7	88.9
Senior Unsecured Bonds [Member]
Fair value levels-secured, unsecured and long term debt	203.3	200.1
Senior Unsecured Bonds [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair value levels-secured, unsecured and long term debt
Senior Unsecured Bonds [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair value levels-secured, unsecured and long term debt
Senior Unsecured Bonds [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair value levels-secured, unsecured and long term debt	203.3	200.1
Other Long-term Debt [Member]
Fair value levels-secured, unsecured and long term debt	8.9	10.4
Other Long-term Debt [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair value levels-secured, unsecured and long term debt
Other Long-term Debt [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair value levels-secured, unsecured and long term debt	1.7	3.3
Other Long-term Debt [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair value levels-secured, unsecured and long term debt	$ 7.2	$ 7.1

Note 6 - Stock-based Compensation (Details Textual) - shares	1 Months Ended	12 Months Ended
	May 31, 2012	Dec. 31, 2004
2004 Stock Incentive Plan [Member] \| Stock Options And Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		3,750,000
2004 Stock Incentive Plan [Member] \| Stock Options And Stock Appreciation Rights [Member] \| Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		2 years
2004 Stock Incentive Plan [Member] \| Stock Options And Stock Appreciation Rights [Member] \| Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
2004 Stock Incentive Plan [Member] \| Stock Options And Stock Appreciation Rights [Member] \| Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		50.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
2004 Stock Incentive Plan [Member] \| Employee Stock Option [Member] \| Non Employee Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		1 year
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
2012 Stock Incentive Plan [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	6 years
2012 Stock Incentive Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
2012 Stock Incentive Plan [Member] \| Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	400,000
2012 Stock Incentive Plan [Member] \| Stock Options And Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	4,000,000
2012 Stock Incentive Plan [Member] \| Stock Options And Stock Appreciation Rights [Member] \| Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	2 years
2012 Stock Incentive Plan [Member] \| Stock Options And Stock Appreciation Rights [Member] \| Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
2012 Stock Incentive Plan [Member] \| Stock Options And Stock Appreciation Rights [Member] \| Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
2012 Stock Incentive Plan [Member] \| Employee Stock Option [Member] \| Non Employee Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year

Note 7 - Interest Expense, Net - Components of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest related to sale of tax benefits	$ 1,849	$ 2,846	$ 3,861	$ 3,704
Interest expense	14,146	15,863	28,321	31,488
Less — amount capitalized	(1,455)	(308)	(2,719)	(768)
Interest Expense, Total	$ 14,540	$ 18,401	$ 29,463	$ 34,424

Note 8 - Earnings Per Share (Details Textual) - shares	3 Months Ended		6 Months Ended
Note 8 - Earnings Per Share (Details Textual) - shares	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,363	135,875	2,430	224,116

Note 8 - Earnings Per Share - Shares Used to Calculate Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Weighted average number of shares used in computation of basic earnings per share (in shares)	49,771	49,456	49,726	49,314
Additional shares from the assumed exercise of employee stock options (in shares)	853	681	833	663
Weighted average number of shares used in computation of diluted earnings per share (in shares)	50,624	50,137	50,559	49,977

Note 9 - Business Segments (Details Textual) $ in Thousands	6 Months Ended
Note 9 - Business Segments (Details Textual) $ in Thousands	Jun. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Number of Reportable Segments	2
Goodwill, Ending Balance	$ 20,121	$ 6,650
Electricity Segment [Member]
Goodwill, Ending Balance	$ 20,100

Note 9 - Business Segments - Summarized Financial Information Concerning Reportable Segments (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2017

Jun. 30, 2016

Dec. 31, 2016

Segment assets at period end

$ 179,364

$ 159,861

$ 369,262

$ 311,455

Operating income

53,152

51,887

112,648

102,430

2,510,633

^[1]

2,273,013

2,510,633

^[1]

2,273,013

$ 2,461,569

Intersegment Eliminations [Member]

Electricity Segment [Member]

16,565

19,266

32,778

21,206

Segment assets at period end

111,777

104,001

227,553

211,869

Operating income

36,117

32,814

77,015

67,599

2,323,618

^[1]

2,031,650

2,323,618

^[1]

2,031,650

Electricity Segment [Member] | Intersegment Eliminations [Member]

Product Segment [Member]

Segment assets at period end

67,587

55,860

141,709

99,586

Operating income

17,035

19,073

35,633

34,831

187,015

^[1]

241,363

187,015

^[1]

241,363

Product Segment [Member] | Intersegment Eliminations [Member]