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.

Organic Rankine cycle (ORC) machines are used to convert low-temperature heat resources into power. Examples include systems making use of waste heat in a cogeneration system, low temperature geothermal electricity generation, solar ponds, and potentially OTEC.

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.

7.5 shows a schematic of a basic ORC system. The system consists of four key components: a pump, an evaporator, an expander (a turbine), and a condenser.