Israel Launches 1.5 GW Energy Storage Initiative
The Israeli Electricity Authority (IEA) has recently awarded contracts for a total of 1.5 GW of high-voltage battery storage capacity
Israel's storage tender sets prices between $0.0056 and $0.0085 per kW, with kWh figures therefore at $49.41 to $74.20 per kWh. Israel has awarded contracts for 1.5 GW of high-voltage battery storage capacity across three regions, marking a significant milestone in the country's energy transition.
The auction, managed by the Israeli Electricity Authority (IEA), will facilitate the deployment of large-scale energy storage systems designed to integrate more renewable energy into the grid. With total investments estimated at ILS 3 billion (~$840 million), the projects are expected to commence operations in 2027.
These projects will have a total storage capacity of 1,300 MWh, potentially increasing to 1,900 MWh after entering the deregulated market. Ormat Technologies, in partnership with Allied Infrastructure, also announced it won tolling agreements for 300 MW/1,200 MWh of storage, marking its entry into Israel's large-scale energy storage sector.
Western Negev (Tekuma area): Noy Agira, Enlight, and EDF will build four facilities totaling 560 MW at a 3.0 agorot/kW tariff. These storage sites will help alleviate grid congestion and enhance the integration of solar power by enabling the storage and dispatch of renewable energy when demand peaks.
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