Israel Awards 1.5 GW Battery Storage Contracts in Landmark Energy Tender

Israel has awarded contracts for 1.5 GW of high-voltage battery energy storage capacity across three regions, representing an estimated investment of 3 billion shekels (approximately $840 million). The landmark tender attracted 11 bidders proposing 29 projects, marking a significant acceleration in the country's energy transition. The regional breakdown allocates 520 MW to Northern Israel, where Bi-Liht, Noy Agira, Allied, and Ormat secured contracts. In the Arava region, Israeli renewable energy developer Enlight and French utility EDF will develop 420 MW. The Western Negev received the largest allocation at 560 MW, awarded to Noy Agira, Enlight, and EDF. All projects are expected to commence operations by 2027-2028. The storage buildout is critical to Israel's target of generating 30% of electricity from renewable sources by 2030. Currently, the country's power grid struggles to absorb all solar energy produced during daylight hours. The primary goal of the new storage facilities is to capture renewable energy generated in southern Israel during the daytime and deliver it to consumption centers in central Israel during evening peak hours. Innovative next-generation 6.25 MWh storage containers are already in production and expected to arrive in Israel by early 2026. The first site will perform load shifting — charging batteries when electricity costs are low and discharging energy during peak rates. By 2026, suppliers plan to deliver approximately 1 GWh of next-generation storage systems, including some 150 energy-storage containers, described as unprecedented in Israel's storage sector.