Enlight secures 300 MW of energy storage in Israeli tender

Israeli renewable energy developer Enlight Renewable Energy Ltd (TLV:ENLT) has successfully secured two energy storage projects totalling 300 MW in the first availability rate tender by the Israel Electricity Authority (IEA). Enlight said on Monday that the installed cost of the battery energy storage system (BESS) will be between USD210 million and USD250 million, depending on the final capacity.
The award grants Enlight 20% of the total allocated capacity in the competitive bidding process. Enlight will supply power at available tariffs for five years, after which it will be able to sell power to the deregulated market. At the end of the period, the company will also have the right to expand the facility's storage capacity to 1,900 megawatt-hours (MWh), up from the 1,300 MWh currently planned.
Located in southern Israel, the Neot Smadar and Ohad facilities are scheduled to commence commercial operations in 2028. Enlight expects these assets will generate annual revenues of $75-85 million during their operational lifespan, with anticipated EBITDA ranging from $37 million to $42 million.
Enlight currently plans to launch approximately 8 GWh of mature energy storage projects by 2027. Its global BESS development pipeline totals approximately 25 GWh, of which 6 GWh is located in Israel.