An organic Rankine cycle (ORC), is fundamentally the same as a steam Rankine cycle; however, it uses a lower boiling point organic fluid to better match its operation to lower temperature heat sources. ORC systems can achieve better efficiencies than steam turbines for smaller systems (less than a few MW_e).

A real Rankine cycle or non-ideal cycle used in actual power plants do not undergo isentropic compression and expansion by pump and turbine respectively. These processes are irreversible compared to the ideal cycle, and there is an increase in entropy as shown in the T-s diagram below.

The four main components of the Rankine cycle are the water pump, boiler, turbine, and condenser. There are four main stages to the Rankine cycle. Compression, heating, expansion, and condensation of the working fluid. The Rankine cycle can be represented by a pressure-volume diagram for each stage.

It simply a modification on the standard Rankine cycle. It reduces the volume of the condenser(i.e., material saving) by sacrificing small amount of work in the turbine. In modified Rankine cycle, steam is expanded to a pressure slightly less than the condenser pressure.