Enlight starts up its 2nd solar-plus-storage power plant in Israel

Israeli renewables company Enlight Renewable Energy Ltd (TLV:ENLT) has initiated commercial operation of its Arad Valley 1 power generation complex in Israel, starting up a 17-MW solar farm with an energy storage system of 31 MWh.

Arad Valley 1 is Enlight’s second solar-plus-storage project to achieve commercial operation in Israel, with the first being Sde Nitzan, which reached the commercial operation date (COD) in August.

With Sde Nitzan’s 23 MW of solar and 40 MWh of storage capacity, Enlight’s portfolio of solar-plus-storage hybrids at home now boasts 40 MW of solar and 71 MWh of storage, the company said.

The first two facilities are part of a cluster of solar-plus-storage combinations that Enlight is building in Israel. The entire cluster will be capable of generating 248 MW and storing 474 MWh of electricity.

The remaining projects are currently under construction, with the company expecting them to reach COD gradually until the end of the first half of 2024.

Enlight calculates that the power plants within the cluster, Arad Valley 1 and Sde Nitzan included, will generate revenues ranging between USD 35 million (EUR 32.8m) and 36 million during the first full year of operation. Earnings before interest, taxes, depreciation and amortisation are projected to stand between USD 25 million and USD 26 million, Enlight said.

As for the monetisation of the solar-plus-storage cluster, Enlight expects the energy to be sold through its integrated power supply model in Israel. Electricity has been contracted under recently signed corporate power purchase agreements (PPAs) and under Enlight’s new partnership with Israeli distribution company Electra Power targeting residential and small business consumers.

The direct sale of electricity to Israeli customers will be possible following the full market liberalisation due in January 2024, the renewables firm added.

(USD 1.0 = EUR 0.938)

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