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.

An Organic Rankine Cycle (ORC) system is a closed thermodynamic cycle used for power production from low to medium-high temperature heat sources ranging from 80 to 400°C and for small-medium applications at any temperature level.

The organic Rankine cycle is is similar to the Rankine steam cycle, but uses an organic fluid such as refrigerants and hydrocarbons instead of water as the working fluid. The ordinary Rankine cycle uses thermal power to convert water to steam, which expands through a turbine in order to generate electricity.

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.