The Organic Rankine Cycle's principle is based on a turbogenerator working as a conventional steam turbine to transform thermal energy into mechanical energy and finally into electric energy through an electrical generator.

Rankine cycle is a heat engine comprised of four internally reversible processes. and reversible (isentropic), the pump and the turbine, the only energy interaction with surroundings is work. For the two isobaric heat exchange processes, the devices are passive and there is no work, only heat transfer.

The working principle of the organic Rankine cycle is the same as that of the Rankine cycle: the working fluid is pumped to a boiler where it is evaporated, passed through an expansion device (turbine, screw, scroll, or other expander), and then through a condenser heat exchanger where it is finally re-condensed.

The ORC-concept has two circuits, one for thermal oil and another for organic fluid. Heat from burning fuel or industrial waste is led in via the oil-filled circuit at a temperature of 250–300 °C to the heat exchanger, creating steam and super heating the organic silicon fluid.