Elsewedy Electric Completes Financing for Greek Battery Project

• Elsewedy Electric paves the way for a sustainable future with Greece's first 50 MW battery storage system, bolstered by €25.5 million in funding, enhancing energy stability by 2025.

Elsewedy Electric SAE has announced the financial closing of Greece's first standalone battery energy storage system (BESS), with a capacity of 50 MW/100 MWh. The company’s subsidiary, Energy Bank I SA, secured a EUR 10 million non-recourse loan from the National Bank of Greece, alongside a EUR 5.5 million loan from the EU’s Recovery and Resilience Fund.

The project will be supported by an additional EUR 10 million in government grants and aims to enhance the stability of Greece's electricity network. Expected to commence operations in the last quarter of 2025, it has a 10-year Contract for Difference secured from Greece's inaugural BESS tender completed in summer 2023.

What does Elsewedy Electric's battery storage project mean for Greece's energy stability?

Implications of Elsewedy Electric's Battery Storage Project for Greece's Energy Stability

• Enhancing Grid Stability: The introduction of a 50 MW/100 MWh battery energy storage system (BESS) will play a crucial role in stabilizing Greece's electricity grid by providing backup power during peak demand and mitigating fluctuations caused by variable renewable energy sources such as solar and wind.
• Support for Renewable Integration: The BESS will facilitate a smoother integration of renewable energy sources into the grid, allowing Greece to maximize the utilization of its growing renewable portfolio. This is particularly important as Greece aims to meet EU targets for renewable energy generation.
• Reduction in Energy Costs: By balancing supply and demand effectively, battery storage can potentially reduce energy costs for consumers. It allows for energy arbitrage, where cheaper energy during low demand periods can be stored and dispatched during peak times when prices are higher.
• Increased Energy Security: The project contributes to Greece’s energy security, reducing dependency on fossil fuel imports and enhancing resilience against energy supply disruptions, both from geopolitical tensions and natural disasters.
• Economic Boost: The financial backing from the National Bank of Greece and the EU’s Recovery and Resilience Fund signifies confidence in the project and can stimulate local economic growth. It may create jobs in construction, maintenance, and operations, further contributing to economic stability in the region.
• Climate Change Mitigation: By promoting the adoption of energy storage technologies, Greece can take significant steps towards achieving its climate targets. This project will help lower greenhouse gas emissions associated with energy generation, contributing to the fight against climate change.
• Foundation for Future Initiatives: The successful implementation of this BESS project can serve as a benchmark for future energy storage developments in Greece and the broader region. It opens doors for further investment in similar technologies and projects.
• Regulatory Framework Development: The involvement of governmental grants and loans demonstrates a supportive regulatory framework for renewable energy projects. This can encourage further investment in energy storage and renewable technologies across Greece, leading to more innovative solutions to energy challenges.
• Technological Advancements: The project is likely to foster technological advancements in energy storage, as local companies may collaborate or seek partnerships with international tech firms to improve efficiency and performance in battery storage systems.
• Enhanced System Flexibility: The addition of battery storage gives grid operators greater flexibility to manage the energy system. This increasingly dynamic nature of energy management can lead to more responsive and resilient energy infrastructure.
• Public Awareness: The visibility of this project can enhance public awareness about renewable energy technologies and energy efficiency, stimulating public interest and support for future renewable initiatives and sustainable practices.