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.

It is shown that by utilizing the full potential of screw expanders instead of turbines, it is possible to produce Organic Rankine Cycle (ORC) systems at these outputs, which can be installed for a cost in the range of $1500 to $2000 /kWe of net output.

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.