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Founded in 1965 by Lucien Y. Bronicki and Dita, Ormat initially focused on solar energy. In 1966, it installed a 600-watt Organic Rankine Cycle unit in Mali.

The company supplied power units to telecommunications and oil and gas sectors in the 1970s, notably to Alyeska Pipeline. Following the 1973 oil crisis, it built a 5 MW Solar Pond Power Plant in 1982. In the 1980s, Ormat shifted to geothermal and renewable energy technologies, launching its first commercial ORC project in the U.S. in 1984. The company also ventured into international projects in the 1990s, including a 150 MW complex in Kenya.