Nofar Energy buys Tesla storage batteries for $30m

Ofer Yannay Credit: Erez Uzir
Ofer Yannay Credit: Erez Uzir

Nofar believes that the storage system enables it to build solar arrays to provide at least 100 megawatt of electricity.

Israeli renewable energy company Nofar Energy (TASE: NOFR) has notified the Tel Aviv Stock Exchange (TASE) that it has signed a strategic agreement with electric vehicle and energy storage company Tesla to purchase large batteries for electricity storage systems. Nofar has already paid Tesla a deposit of 5% of the value of the deal on signing of the agreement.

Nofar believes that the storage system enable them to build solar arrays to provide at least 100 megawatt of electricity. The company estimates that the storage facility will allow it to build a solar energy system capable of supplying 150 megawatt.

Nofar Energy sees the storage system generating revenue of NIS 534 million, including annual electricity sales of NIS 50 million and maintenance income of NIS 10 million for solar energy systems.

Nofar, which was founded nine years ago by its chairman Ofer Yannay, last week inaugurated its first electricity storage facility in Israel, in one of the villages near the Gaza border. Minister of Energy Yuval Steinitz attended the ceremony. The new facility will generate an overall 3.22 megawatt per hour and will begin operations in the coming weeks (for 25 years) and Nofar plans to build a photovoltaic system alongside it to provide an additional 2.8 megawatts, which will be sold at NIS 0.45 per kilowatt hour.

Yannay stresses that storage systems create greater flexibility for Israel's electricity grid and can supply electricity for an entire kibbutz day and night.

Published by Globes, Israel business news - en.globes.co.il - on March 16, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Ofer Yannay Credit: Erez Uzir
Ofer Yannay Credit: Erez Uzir
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