Nofar Energy Breaks Ground in Battery Storage: Secures First Long-Term Fixed-Price Flexibility Purchase Agreement for German BESS Project

Nofar Energy, a leading global player in renewable energy investments, has made a significant stride in the battery storage sector. The company recently secured its first long-term fixed-price flexibility purchase agreement for a German BESS (Battery Energy Storage System) project. This strategic move not only solidifies Nofar's position in the European energy market but also highlights the growing demand for energy storage solutions.

The agreement, signed with Sungrow, a global leader in PV inverter and energy storage systems, involves the construction of a 116.5MW / 230MWh BESS project in Stendal, Saxony-Anhalt, Germany. This project will be the first in Germany to utilize Sungrow's latest liquid-cooled energy storage system, PowerTitan2.0, which offers excellent efficiency, outstanding safety, and lower CAPEX and OPEX costs.



The PowerTitan2.0 system seamlessly integrates the 2.5MW Power Conversion System (PCS) and 5MWh battery into a single 20-ft container, enhancing efficiency and safety while reducing both capital and operational expenditure. This innovative technology is set to revolutionize the energy storage landscape, providing a more efficient and cost-effective solution for grid stability and renewable energy integration.

The development of energy storage projects in Europe is at a fast pace, with over 140 GW predicted to be installed between 2024 and 2030. Germany, committed to sourcing 80% of its energy production from renewable sources by 2030, is at the forefront of this transition. ESS projects, such as the one undertaken by Nofar Energy and Sungrow, play a key role in supporting this objective by providing more efficient use of renewables and grid stability.



The fixed-price agreement secured by Nofar Energy mitigates risks associated with fluctuating energy prices, providing a stable revenue stream for the company. This agreement ensures that Nofar receives a guaranteed price for the energy stored and released by the battery system, regardless of market fluctuations. This predictability allows Nofar to plan and manage its cash flows more effectively, reducing the impact of volatile energy prices on its financial performance.

The agreement's duration and terms significantly impact Nofar Energy's long-term financial planning and growth strategies. The 15-year duration provides a stable revenue stream, enabling Nofar to plan for consistent growth and invest in new projects with confidence. The fixed-price agreement protects Nofar from market fluctuations, ensuring predictable returns and reducing risk. This stability allows Nofar to focus on strategic expansion, such as its recent 1 GW solar project in Romania, and solidify its position as a leading renewable energy company.

In conclusion, Nofar Energy's groundbreaking BESS project in Germany, in collaboration with Sungrow, is a testament to the company's commitment to driving innovation and growth in the renewable energy sector. The long-term fixed-price agreement not only secures Nofar's financial stability but also underscores the growing demand for energy storage solutions in Europe. As the energy transition continues, Nofar Energy remains at the forefront, paving the way for a sustainable and resilient energy future.