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.

ORC as bottoming cycle of recuperative or high pressure ratio gas turbines, micro gas turbines and fuel cells are also considered as other cost effective options. Moreover, it was shown that using ORC in combination with cooling and heating systems will improve the performance and decrease the cost of system.

An organic rankine cycle operates under the same principle as a steam rankine cycle, but with a lower operating temperature and pressure. These operating conditions are a result of substituting, into the closed loop system, a working fluid other than water.