Israel’s Electricity Authority has awarded contracts for 1,500 MW high-voltage energy storage capacity to Enlight, EDF, Noy Storage, B-Light, Allied, and Ormat.

A total of 11 bidders participated in the tender, submitting proposals for 29 projects with a total capacity of approximately 4,000 MW for at least four hours of energy storage. The estimated investment in these facilities is around ₪3 billion (~$845.98 million).

B-Light, Noy Storage, Allied, and Ormat will establish four facilities in Israel’s northern region, with a total capacity of 520 MW at an average tariff of ₪0.02 (~$0.0056)/kWh.

In the Arava region, Enlight and EDF will build three facilities with a combined capacity of 420 MW at an average tariff of ₪0.03 (~$0.0085)/kWh.

In the western Negev (T’kuma area), Noy Storage, Enlight, and EDF will construct four facilities with a total capacity of 560 MW, also at an average tariff of ₪0.03 (~$0.0085)/kWh.

The facilities are expected to begin operations in 2027, enabling the system operator integrate additional renewable energy facilities with the electricity grid. The facilities’ host regions face power grid congestion but have significant renewable energy generation potential.

The energy storage initiative aims to help optimize limited grid resources and support the country’s renewable energy targets.

Eli Cohen, Minister of Energy and Infrastructure, said, “Establishing storage facilities is important to meet our renewable energy production targets. I congratulate the winners of the tender. This will increase the electricity supply in the market, reduce costs for consumers, and allow electricity consumption during emergencies while using clean energy to benefit Israel citizens’ health.”

In August 2023, Israel announced an 800 MW/3,200 MWh BESS buildout comprising four facilities of 200 MW/800 MWh each in the northern Gilboa mountain range region.