Israeli developer Nofar Energy has entered into UK renewable energy market by signing an agreement with Interland, an investment group focused on real estate and energy storage investments in the UK and Europe.
Under the agreement, Nofar and Interland will jointly own a dedicated platform for the origination, development, construction, financing, and operation of battery energy storage projects in the UK.
Nofar will hold 75% of the joint venture, and Interland the remaining 25%.
The first project of this new partnership will be Cellarhead, the UK’s largest planned battery energy storage project, according to Nofar.
The project will connect to UK’s power grid using a 300 to 349MW connection, with a storage capacity of about 700 megawatt-hours.
The estimated construction costs of the project are £214m (€252m), with estimated annual revenue of £42m and EBITDA of £35.5m.
The JV plans to start construction in the first half of 2022 and connect the project to the grid in the second quarter of 2024.
The partnership is developing or working to develop additional battery energy storage projects on a substantial scale.
Nofar said its entry into the UK is a significant step in its energy storage operations.
Nofar constructed and connected Israel’s first project to include battery energy storage, that was connected it to the national power grid at Kibbutz Nir-Yitzhak.
It has also signed strategic procurement agreements with Tesla for the supply of battery energy storage with an aggregate capacity of 300MWh.
The company also developed the first facility in Israel deploying Tesla’s battery energy storage systems to the power grid at Kibbutz Shoval.
Last week, Nofar inked an agreement with Mivne Real Estate on developing, building and maintaining storage projects with an aggregate capacity of a 400MWh in Israel.
Nofar Energy chief executive Nadav Tene said: “Nofar Energy continues to realize its expansion strategy by now entering into the battery energy storage field in the UK, which is characterized by significant growth and high yields.
“Moreover, battery energy storage requires specific engineering, operating, financing, and commercial expertise.
“The new partnership with Interland to jointly provide the UK’s largest storage project represents significant progress for Nofar.
“It allows Nofar to leverage its entrepreneurial capabilities an organizational structure that includes global engineering and operational capabilities and leadership in the energy storage field in Israel.”