Nofar secures long-term, fixed-price offtake deal for 209 MWh German BESS project

Israeli developer and independent power producer Nofar Energy has announced a landmark seven-year fixed-price flexibility purchase agreement (FPA) for its 104.5 MW / 209 MWh Stendal BESS project in Germany.

The deal, which is described as the first of its kind in continental Europe, will secure a stable and predictable revenue stream for Nofar, offering protection from market volatility and ensuring long-term financial certainty. It will provide Nofar with estimated EUR 85 to EUR 95 million ($89 to $100 million) over the period from 2027–2033, with an option to commence earlier on a merchant basis before January 2027.

The deal was inked with an unnamed major global energy corporation, “which operates across the full energy value chain, from managing renewable energy projects and energy storage systems to trading gas and electricity worldwide, with an investment grade credit rating”.

“We are thrilled to announce this unique fixed-price tolling agreement for the Stendal project, our first storage project in Germany. This agreement not only provides revenue certainty for Nofar Energy but also strengthens our partnership with one of the world’s largest and most respected energy corporations. The stability provided by this agreement will enable us to finance the project on favorable terms and improve our return on equity,” said Nadav Tenne, CEO of Nofar Energy.

Recently, Nofar Energy announced the closure of a £152 million ($194 million) financing for its Cellarhead BESS project in the UK, which boasts a capacity of 300 MW / 624 MWh. The financing is being provided by a consortium of lenders, including Goldman Sachs, Santander, Bank Hapoalim, and Bank Leumi, with Goldman Sachs acting as the structuring bank, mandated lead arranger, and lender.

Nofar Energy’s growing portfolio comprises 10 GW of renewables and 10 GWh of battery storage projects across 10 countries. Of these, 2.4 GW and 1.2 GWh, respectively, are already connected or under construction. To date, 73% of its connected projects have secured fixed tariffs for an average of 15 years, ensuring greater financial stability and predictability for investors and stakeholders, the company says.