Nofar Energy creates JV for 700MWh UK battery storage site

• Israel's Nofar Energy is to seek the development of UK battery energy storage systems (BESS) in a new joint venture (JV) with financial investment group Interland.

The initial project in this JV is to connect to the UK's power grid making use of a 300 to 349MW connection, with a storage capacity of c. 700MWh. This makes it the UK's largest intended battery energy storage project, Nofar claimed, with estimated building expenses of ₤ 214 million.

Building of the project, referred to as Cellarhead, is set to begin in the initial half of 2022, with strategies to attach the project to the grid in the second quarter of 2024.

The project is to have estimated yearly incomes of ₤ 42 million, and also an estimated annual EBITDA of ₤ 35.5 million.

Alongside this, the JV is functioning to establish added battery energy storage projects on what it stated is a considerable scale. Under the agreement between both, Nofar as well as Interland will jointly have a specialized system for the source, advancement, construction, funding and also procedure of battery energy storage projects in the UK. Nofar will certainly hold 75% of the JV, while Interland will certainly hold the remaining 25%.

Nadav Tene, CEO of Nofar Energy, claimed: "Nofar Energy continues to understand its growth technique now participating in the battery energy storage area in the UK, which is characterised by significant growth and high yields.

" The collaboration will produce substantial development, numerous megawatts as well as a considerable return on investment."

In Israel, Nofar created and connected the nation's initial project to include battery energy storage, and also has actually also signed calculated procurement agreements with Tesla for the supply of battery energy storage with an aggregate capacity of 300MWh.

On the other hand, in the UK a variety of various other large scale BESS projects have been revealed in current months, including a 360MW project from Sembcorp that the firm is declaring to be the biggest in Europe. Other big scale BESS sites in the UK consist of Zenobe Energy's 100MW/107MWh project in Capenhurst, Chester, Harmony Energy and Fotowatio Renewable Ventures' 99MW/198MWh Clay Tye site as well as a 100MW battery storage center in Ireland established by Lumcloon Energy and South Korea's Hanwha Group.