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 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.

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).