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 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.

Organic Rankine Cycles differ from traditional steam Rankine Cycles in their use of an organic liquid as opposed to steam as the working fluid. The term ORC is also applied generally to any Rankine cycle with a low-grade heat source.

A basic ORC consists of four main components: an evaporator, an expander, a condenser, and a pump. Figure 1 shows the simplest ORC configuration. As can be seen, liquid in saturated conditions (1) is pumped, increasing its pressure, into the evaporator (2) where it is evaporated by supplying energy in the form of heat.