GENERAL AND BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2011

GENERAL AND BASIS OF PRESENTATION

NOTE 1 — GENERAL AND BASIS OF PRESENTATION

These unaudited condensed consolidated financial statements of Ormat Technologies, Inc. and its subsidiaries (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, the 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, 2011, the consolidated results of operations and comprehensive income (loss) for the three and six-month periods ended June 30, 2011 and 2010, and the consolidated cash flows for the six-month periods ended June 30, 2011 and 2010.

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-month periods ended June 30, 2011 are not necessarily indicative of the results to be expected for the year ending December 31, 2011.

These 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, 2010. The condensed consolidated balance sheet data as of December 31, 2010 was derived from the audited consolidated financial statements for the year ended December 31, 2010, but does not include all disclosures required by U.S. GAAP.

Dollar amounts, except per share data, in the notes to these financial statements are rounded to the closest $1,000.

Concentration of credit risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of temporary cash investments, marketable securities 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, 2011 and December 31, 2010, the Company had deposits totaling $17,247,000 and $55,537,000, respectively, in seven U.S. financial institutions that were federally insured up to $250,000 per account. At June 30, 2011 and December 31, 2010, the Company’s deposits in foreign countries amounted to approximately $33,166,000 and $37,929,000, respectively.

At June 30, 2011 and December 31, 2010, accounts receivable related to operations in foreign countries amounted to approximately $42,230,000 and $26,128,000, respectively. At June 30, 2011 and December 31, 2010, accounts receivable from the Company’s major customers that have generated 10% or more of its revenues amounted to approximately 41% and 40% of the Company’s accounts receivable, respectively.

Southern California Edison Company (“SCE”) accounted for 29.5% and 25.5% of the Company’s total revenues for the three months ended June 30, 2011 and 2010, respectively, and 28.3% and 25.5% of the Company’s total revenues for the six months ended June 30, 2011 and 2010, respectively. SCE is the power purchaser and revenue source for the Mammoth complex, which was accounted for under the equity method through August 1, 2010. Following the Company’s acquisition of the remaining 50% interest in the Mammoth complex, as described in Note 3, the Company has included the results of the Mammoth complex in its consolidated financial statements.

Sierra Pacific Power Company and Nevada Power Company (subsidiaries of NV Energy, Inc.) accounted for 12.0% and 13.7% of the Company’s total revenues for the three months ended June 30, 2011 and 2010, respectively, and 14.1% and 16.2% of the Company’s total revenues for the six months ended June 30, 2011 and 2010, respectively.

Hawaii Electric Light Company accounted for 11.8% and 8.0% of the Company’s total revenues for the three months ended June 30, 2011 and 2010, respectively, and 11.2% and 7.6% of the Company’s total revenues for the six months ended June 30, 2011 and 2010, respectively.

Kenya Power and Lighting Co. Ltd. accounted for 8.4% and 9.2% of the Company’s total revenues for the three months ended June 30, 2011 and 2010, respectively, and 8.6% and 9.9% of the Company’s total revenues for the six months ended June 30, 2011 and 2010, respectively.

The Company performs ongoing credit evaluations of its customers’ financial condition. The Company has historically been able to collect on all of its receivable balances, and accordingly, no provision for doubtful accounts has been made.