So, that will add to our PTC value. On the other hand, we do have an historical tax equity transaction that basically will discontinue in the end of this year, because it basically reached almost 10 years of operation and it is contributing around $9 million to $10 million annually to PTCs. So, next year, what we will see is a $10 million reduction in tax equity transaction on one hand. But then, all the projects that kicked in this year plus the Beowawe should at least make up for it. So, year-over-year, we should see flat with slightly up numbers. So, bottom-line, ITC will be extremely significant next year; PTC should be very close year-over-year; and all of it will bring a lot of cash to the company to support our growth.
Jeff Osborne: That’s helpful. Maybe just two quick follow-ups. See the legacy $9 million to $10 million, which project is that?
Assi Ginzburg: Forgot. I will come back to you after the call.
Assi Ginzburg: Okay, no worries. And then, maybe the final question is, how should we think about the new energy community map? Quite a bit of Nevada, it’s characterized as an energy community, which will give you an extra 10%. So, you mentioned, Doron, that you are accelerating some drilling and testing. Are you specifically targeting energy community areas to try to capture that extra 10%, now that you have a proverbial roadmap on where to go, or not necessarily?
Doron Blachar: Unfortunately, the resource underground doesn’t follow the map. So, whenever we see a resource, we will develop it regardless of the 10%. I would say that the PPA pricing of today, that continues to go up, supports geothermal development regardless of this additional 10%, which is a very nice upside. But we’re looking to develop geothermal wherever we have.
Jeff Osborne: Thanks. Appreciate the color.
Assi Ginzburg: But we do have assets that are sitting on the 40%, or if you think about the $30 plus PTC. With that being said, the returns are so good. Regardless of that, we will do the project. But we may benefit from it. We may get lucky. We are very surprised of how big part of Nevada is part of the energy community. With respect to Storage, we were very lucky to have many of our Storage assets in the 40% ITC criteria. And the two assets that we released this quarter, which is Bird Dog and Lower Rio are both entitled to 40% in addition to our biggest project right now, which is Bottleneck that’s also entitled to 40%. So, it looks like we will benefit from the energy community on top of the expectation that the liquidity of the ITCs and PTCs will be extremely high because of the ability to carry back three years the tax credits versus historical profits of other companies.
Jeff Osborne: Thanks so much. That’s all I had.
Operator: Great, thank you. We have another question from Derek Podhaizer from Barclays. Please go ahead.
Derek Podhaizer: Hey, good morning. Just one question from me. You talked about battery prices being an area of relief. Just wanted to get a sense of your long-term outlook. Have these prices structurally stepped down? Or is this temporary and you would expect inflation to creep back in? Just some overall thoughts on battery prices and what do you think about over the next few years?
Doron Blachar: What we’ve seen in the battery prices is a shift of the suppliers from fixed long-term contracts, where you would order — you would sign a contract and order the batteries over time to the fact that pricing are getting fixed only when you issue the actual PO. And until that time, the pricing are tied to lithium prices as well as other elements. Lithium prices, I believe, over the last year, year-and-a-half, went up 500%, went down 50%, went up another 200%. I think at the end of the day, it is important to have the right frame agreement with the battery developer and be ready — we should appeal once the economics of the project are working. It might be that you do not cash the lowest battery pricing, but obviously not the highest.
But regardless if the economics of the project work, then that’s the time to issue the PO. And once you issue the PO, the prices are fixed. So, that’s basically the way we look at it. We do sign frame agreements and we issue the PO simultaneously when we start construction of a project, and by that, lock in the returns that we see.
Derek Podhaizer: Great. Appreciate the color. I’ll turn it back.
Operator: Great, thank you. I will now turn the call back over to Doron Blachar for closing remarks.
Doron Blachar: Thank you. Thank you, all. This was a strong quarter and represents our continuous work to grow the business with 37 megawatts of geothermal and solar and 62 megawatts of Energy Storage coming online, and 102 megawatt of geothermal and solar and 155 megawatt/380 megawatt hour of energy projects stored that started construction this quarter. These projects will support our future growth and that allows us to increase our target for the end of 2025. Thank you, everyone.
Operator: Thank you. Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.
