Israeli renewable energy company Nofar Energy (TASE: NOFR) is buying power storage systems from Tesla for $54 million, which can supply 200 megawatts. This is an expansion of cooperation began earlier in the year when Nofar bought storage systems from Tesla in March for $30 million, which can supply 100 megawatts.
Under the terms of the agreement, Nofar will pay 5% of the sum to Tesla upon signing the agreement and the rest according to certain milestones. The battery storage systems will be provided between January 2023 and March 2024.
Nofar said that most of the storage systems purchased from Tesla in March are already being built or about to be built.
Nofar estimates its EPC (Engineering, Procurement, and Construction) revenue from the second agreement will total - NIS 250 million. The annual revenue from power sales (arbitrage and grid services) are expected to total NIS 20-50 million.
Nofar CEO Nadav Tenne said, "Having projected the upcoming shortage of the power grid in extensive areas over a year ago, we prepared accordingly with professional capabilities and control systems, pilots, and strategic collaboration agreements with equipment makers and suppliers. As a result, we can leverage the partnerships we put in place to build and connect tens of storage facilities with significant capacity over the next 12 months. These facilities will generate revenues from power sales, enabling the construction and connection of tens of additional solar systems at high rates independently of the grid’s resources. We plan to initiate similar storage facilities through the growth platforms we own in Europe and the US. We are proud to be the leaders of Israel’s power storage revolution."
Published by Globes, Israel business news - en.globes.co.il - on November 2, 2021.
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