Nofar Energy's CEO, Nadav Tene, who said the new JV is to "generate significant growth". Image: Nofar Energy
Israel’s Nofar Energy is to pursue the development of UK battery energy storage systems (BESS) in a new joint venture (JV) with investment group Interland.
The first project in this JV is to connect to the UK’s power grid using a 300 to 349MW connection, with a storage capacity of c.700MWh. This makes it the UK’s largest planned battery energy storage project, Nofar said, with estimated construction costs of £214 million.
Construction of the project, dubbed Cellarhead, is set to kick off in the first half of 2022, with plans to connect the project to the grid in the second quarter of 2024.
The project is to have estimated annual revenues of £42 million, and an estimated annual EBITDA of £35.5 million.
Alongside this, the JV is working to develop additional battery energy storage projects on what it said is a substantial scale. Under the agreement between the two, 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 JV, while Interland will hold the remaining 25%.
Nadav Tene, CEO of Nofar Energy, said: "Nofar Energy continues to realise its expansion strategy by now entering into the battery energy storage field in the UK, which is characterised by significant growth and high yields.
"The partnership will generate significant growth, hundreds of megawatts and a significant return on investment."
In Israel, Nofar constructed and connected the country's first project to include battery energy storage, and has also signed strategic procurement agreements with Tesla for the supply of battery energy storage with an aggregate capacity of 300MWh.
Meanwhile, in the UK a number of other large scale BESS projects have been announced in recent months, including a 360MW project from Sembcorp that the company is claiming to be the largest in Europe. Other large scale BESS sites in the UK include Zenobe Energy's 100MW/107MWh project in Capenhurst, Chester, Harmony Energy and Fotowatio Renewable Ventures' 99MW/198MWh Clay Tye site and a 100MW battery storage facility in Ireland developed by Lumcloon Energy and South Korea's Hanwha Group.