Nofar Energy CEO Nadav Tenne
Israel’s Nofar Energy has officially announced its further expansion with Tesla. On Monday, the company said it entered its second framework agreement with Tesla for more battery stored power systems worth $54 million.
Nofar will purchase battery storage systems of 200 megawatts, and will pay 5% on the contract signing date and the balance under set milestones. The battery storage will be supplied from January 2023 through March 2024.
The first agreement with Tesla took place in February 2021 for 100 MW/h and that is nearing construction, says Nofar, which says the quick implementation of the original deal and demand made it decide to seek further capacity.
“I welcome the expanded collaboration with Tesla and thank its representatives for the professional and effective interface. Having projected the upcoming shortage of the power grid in extended areas over a year ago, we prepared accordingly with professional capabilities and control systems, pilots, and strategic collaboration agreements with equipment makers and suppliers,” said Nofar CEO Nadav Tenne in a statement to Tesla North.
Tesla’s first storage facility in Israel was completed by Nofar several weeks ago, in Kibbutz Shoval. Next week, a ceremony will take place at the facility, with Tesla executives attending and also representatives of Israel’s energy ministry and Electric Authority, confirmed Nofar.
The new facility offers a capacity of 2.718 MW/h, expanding pressure on the local grid by leveraging photo-voltaic systems with significant capacity at a high rate of NIS 0.45 per each Kw/h produced. Coupled with Tesla’s battery storage, Nofar says extra economic value is added with expected rises in electricity prices.
“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 USA. We are proud to be the leaders of Israel’s power storage revolution,” added Tenne.
We previously reported Nofar Energy had expanded its Tesla collaboration, but now further details of the agreement have been confirmed by the company.
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