Enlight Renewable Energy (Enlight), a renewable energy platform, announced that its two companies’ energy storage facilities have won bids. They won the bid in the Israel Electricity Authority’s first availability tariff tender process. The two sites, Neot Smadar and Ohad are located in the south of Israel and have a combined grid connection capacity of 300 MW AC.
According to the tender’s terms, after supplying power at the availability tariff rate for five years, the Company may transition to selling electricity into the deregulated market as well as increase the facilities’ storage capacity. Securing a grid connection of 300 MW AC will allow Enlight to build projects with a total storage capacity of 1,300 MWh, potentially rising to 1,900 MWh following the transition into the deregulated market. According to the tender’s terms, the projects are expected to reach commercial operation by 2028.
The combined construction cost of the two facilities is expected to range between $210-250 million, depending on the ultimate amount of capacity the Company decides to build. The projects are expected to generate combined average annual revenues of $75-85 million and combined average annual EBITDA of $37-42 million over the full life of the projects.
Enlight has approximately 8 GWh of Mature1 storage projects that are expected to enter into operations by 2027. In addition, the Company has a portfolio of energy storage assets in various stages of development totaling approximately 25 GWh, of which about 6 GWh are located in Israel. The two sites selected in the tender represent 20% of the total capacity awarded through the bidding process, further solidifying Enlight’s leadership of Israel’s energy storage market as the only company with significant presence in both medium-voltage and high-voltage storage sectors.
Gilad Peled, CEO of Enlight MENA commented, “Enlight is proud to lead the energy storage revolution in Israel with a significant double win, representing 20% of the total capacity in the Israel Electricity Authority’s tender. Our success underscores Enlight’s leadership of the storage sector, and these projects will join the Israel Solar and Storage cluster that is already in operation. The massive investment in constructing these facilities in the south of Israel will contribute to greater energy security and create numerous jobs. Our advanced storage facilities in Neot Smadar and Ohad are part of Enlight’s broader vision to lead the transition to renewable energy production in Israel. We are proud to be part of this historic trend, accelerating the shift to clean energy, enhancing competition, and reducing electricity prices for Israel’s citizens.”
1 Mature projects are defined as currently operating, under construction, and pre-construction (with construction starting within a 0-12 month timeframe).
