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Ormat Technologies Inc. - Analyst/Investor Day

So really, just 2 numbers, looking at our actual generation, not nameplate capacity but actual generation from 2007 through 2011, you can see the substantial growth. It does come a little bit in steps. If you look at 2011 and 2012, during those 2 years, we're working on 3 very important projects. Some of them have been completed already. Some of them will be completed later on. And so, you can expect the jump from a certain capacity to another capacity. But if you look at the trend, we have made a lot of progress. And the interesting thing about choosing 2007 as the beginning of this chart is that we haven't done any substantial acquisitions since 2007. Actually, we lost a little bit of capacity with the end of our BOT contracts in the Philippines. So all of this is being accomplished by improving plants, expanding fields and by greenfields.

But as you know, operations, in general, the operating plants cannot control their contract rates. Their way to increase revenue from an existing facility, an existing contract is typically by making sure that we maximize the use of the field and maximize capacity or generating capacity, capacity factor. What we do have control over, to some extent, are costs. And the slide on the right is also an interesting view of how in nominal dollars, our cost to generate the megawatt hour have changed over the years. If we focus first on the gray bars, which is really the full picture, then you can see that the cost to generate a megawatt hour in 2011 has been less than that in 2007, and this is without any corrections for inflation and general cost, which have escalated. So basically, we were able, with all challenges that we had in different projects, we're able to control cost and, actually, reduce cost in real numbers.

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