US-based renewable energy company Ormat Technologies Inc said on Thursday it has been awarded two 15-year tolling agreements by the Israeli Electricity Authority for two energy storage projects with a combined capacity of approximately 300 MW/1200 MWh.
The projects are being developed in partnership with specialist contractor Allied Infrastructure Ltd and will be owned 50/50 by Ormat and Allied. The companies are in advanced stages of obtaining interconnection agreements and land use permits. They expect the energy storage facilities to commence commercial operation in 2028. The tolling agreements, which were awarded in a tender, include an option to terminate the initial contract and participate in the merchant market.
The awards mark Ormat’s and the partnership’s first major entry into the Israeli utility-scale energy storage market. The partnership intends to pursue this segment and develop additional energy storage projects.
