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Israel Awards 1,500 MW Energy Storage Contracts to Support Renewable Integration

Israel’s Electricity Authority has awarded contracts for 1,500 MW of high-voltage energy storage capacity to Enlight, EDF, Noy Storage, B-Light, Allied, and Ormat. The tender attracted 11 bidders, with 29 project proposals totaling 4,000 MW of energy storage capacity, requiring an estimated investment of 3 billion (~$845.98 million).

Project Breakdown and Tariffs

• Northern Israel: B-Light, Noy Storage, Allied, and Ormat will establish four facilities with a total capacity of 520 MW at an average tariff of 0.02 (~$0.0056)/kWh.
• Arava Region: Enlight and EDF will construct three facilities with a combined capacity of 420 MW at an average tariff of 0.03 (~$0.0085)/kWh.
• Western Negev (T’kuma area): Noy Storage, Enlight, and EDF will build four facilities totaling 560 MW, also at an average tariff of 0.03 (~$0.0085)/kWh.

The facilities are expected to begin operations in 2027, helping to alleviate grid congestion in high-renewable-generation areas and enabling better integration of solar and wind energy into the national electricity system.

Strategic Importance

• Optimizing grid resources in regions with significant renewable energy potential but transmission bottlenecks.
• Enhancing electricity supply stability and reducing costs for consumers.
• Strengthening energy security, allowing for clean energy utilization during emergencies.

Israel's Minister of Energy and Infrastructure, Eli Cohen, emphasized that these storage projects are key to meeting the country’s renewable energy targets. This follows Israel’s August 2023 announcement of an 800 MW/3,200 MWh BESS buildout across four facilities in the Gilboa mountain range.

With these investments, Israel is taking major strides in energy storage deployment, aligning with global trends toward grid modernization and renewable energy expansion.