Enlight Renewable Energy announced that two of its energy storage facilities have won bids in the Israel Electricity Authority’s inaugural availability tariff tender. Located in southern Israel, the Neot Smadar and Ohad sites boast a combined grid connection capacity of 300 MW AC.
Under the tender terms, Enlight will supply power at the availability tariff rate for five years, after which it can transition to selling electricity in the deregulated market and potentially expand the facilities’ storage capacity. With the 300 MW AC grid connection, Enlight plans to develop projects with a total storage capacity of 1,300 MWh, which could grow to 1,900 MWh after entering the deregulated market. The projects are slated to begin commercial operations by 2028.
The total construction cost of these two facilities is estimated at $210-250 million, depending on the final capacity. The projects are expected to generate annual revenues of $75-85 million and an average annual EBITDA of $37-42 million over their lifespan.
Enlight currently has around 8 GWh of mature storage projects set to be operational by 2027. Additionally, the Company has a portfolio of energy storage assets in various development stages totaling approximately 25 GWh, including 6 GWh in Israel. The two newly awarded sites represent 20% of the total capacity allocated in the tender, further solidifying Enlight’s leadership in Israel’s energy storage market as the only company with a significant presence in both the medium- and high-voltage storage sectors.
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