
The Electricity Authority of Israel has received proposals for a competitive procedure aimed at establishing and operating large storage facilities by the private market. These facilities will be utilized by the system manager, Nega Company, to regulate energy flow in the electricity grid and relieve loads in substations, thereby maximizing the use of the existing grid infrastructure.
The competitive process, conducted in full coordination with Nega Company, attracted offers from 11 different bidders for 29 projects, totaling approximately 4,000 megawatts of capacity for at least four hours. The facilities are scheduled to begin operations in 2027.
These new storage facilities will enable the connection of additional renewable energy installations to the grid, aiding in frequency stabilization and enhancing the reliability of the electricity supply as part of the development plan for the production segment.
The facilities will be built in three regions with significant congestion in the electricity network and high potential for renewable energy production: the northern region, the Takuma region (western Negev), and the Arabah. These installations are expected to bolster energy security in these areas.
As part of the process, the Electricity Authority will submit a list of projects to Nega Company for evaluation of their grid connection potential, based on the price offers received. Following this assessment, the Authority will announce the winning projects.
The advancement of this procedure was made possible through the collaboration between the Electricity Authority, the Israel Land Authority, and the Planning Administration. The Israel Land Authority’s decision to reduce the uniform price for storage facilities has provided certainty and encouraged competition among electricity consumers. Additionally, the Planning Administration has worked to create statutory conditions and reduce planning uncertainties for the procedure participants.
Amir Shavit, Chairman of the Electricity Authority, stated, “The tender is a significant milestone toward meeting the government’s goals and increasing the ability to connect renewable energy facilities to the electricity grid. This move will help regulate the flow of energy in the grid and improve the reliability of the electricity supply. The Electricity Authority will continue to stimulate the increase in green energy production, while promoting an efficient, reliable, and cleaner economy.”
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