Enlight secures major battery storage projects in Israeli grid tender

Israeli renewable energy developer Enlight has won grid connection rights for 300 MW of battery storage capacity in a national tender, enabling the construction of systems that can store between 1,300 and 1,900 MWh of energy.

The two facilities – Neot Smadar and Ohad in southern Israel – will operate under regulated tariffs for five years before gaining merchant market access. The projects must begin operations by 2028, with construction costs estimated at $210-250 million. This latest award accounts for 20% of the capacity allocated in Israel’s first storage tender.

In terms of the energy storage of the projects and duration of power, the company said in its press release that “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.”

Tender

Israel is aiming to achieve a 40% share of renewables in the country’s power mix by 2030, with the objective to be met through the installation of 18 GW to 23 GW of solar projects, coupled with 5.5 GW/33 GWh of storage capacity. 

To support this transition, Israeli network operator Nega Company ran a tender in July 2024 which attracted offers from 11 bidders for the construction and operation of 29 high-voltage energy storage projects, totaling approximately 4 GW with each project offering a storage capacity for at least four hours. While not officially confirmed, Enlight’s announcement appears to be for this tender process from mid-2024.

Also announced in Israel recently was Ormat securing 15-year tolling agreements for 1.2 GWh of energy storage,

Enlight

The tender win strengthens Enlight’s position in Israel’s emerging storage market, and 6 GWh of projects are at various stages of developments, the company said, in the country.

The projects join Enlight’s 25 GWh global storage development pipeline spanning Israel, the U.S., and Europe. The company expects the facilities to generate $75-85 million in annual revenue. The company reports 8 GWh of advanced-stage storage projects globally targeted for operating by 2027.

The scope represents a significant expansion for Enlight, which has grown from an Israeli solar developer founded in 2008 to operating renewable projects across three continents. It is dual-listed on the Tel Aviv Stock Exchange and NASDAQ following its 2023 IPO in the U.S..

Comments:

Gilad Peled, CEO of Enlight MENA said: “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.”