Nofar Energy, a global leader in renewable energy and battery storage systems (BESS), has signed a major 7-year Flexibility Purchase Agreement (FPA) for its Stendal BESS project in Germany. The project, with a capacity of 104.5 MW and 209 MWh, will benefit from a fixed-price agreement, ensuring consistent revenue over the long term and eliminating market risks. This agreement is the first-ever fixed-price FPA for a BESS project in Continental Europe, setting a new standard in the energy storage sector.
Nofar Energy has secured a deal with a major global energy corporation, expected to bring in between €85 million and €95 million over seven years (2027–2033). The agreement includes the option to begin earlier on a merchant basis before January 2027. This innovative approach provides a reliable and competitive way to finance large-scale battery energy storage systems (BESS) projects, particularly in unpredictable energy markets. While fixed-price agreements like this are common in solar and wind energy, they are still emerging in the storage sector, both in Europe and worldwide. This deal is a key step forward in the development of storage market frameworks and the growth of the battery storage industry.
The global energy corporation partnering with Nofar Energy in this Tolling Agreement is a major player in the energy sector, with a strong investment-grade rating. The company is involved in all areas of the energy value chain, focusing on renewable energy, battery storage systems, flexible generation power plants, and extensive electricity and gas trading. This agreement not only ensures a stable income for Nofar Energy’s Stendal BESS project but also boosts its position in the global energy storage market. The fixed-price FPA provides consistent revenue, shields the project from market volatility, and enhances financing options. This structure gives Nofar Energy a competitive edge, especially in securing favorable project financing terms.
Nadav Tenne, CEO of Nofar Energy, said in a statement, “We are thrilled to announce this unique fixed-price tolling agreement for the Stendal project, our first storage project in Germany. This agreement not only provides revenue certainty for Nofar Energy but also strengthens our partnership with one of the world’s largest and most respected energy corporations. This innovative deal positions Nofar at the forefront of the global energy storage market and validates our commercial and techno-economic capabilities. The stability provided by this agreement will enable us to finance the project on favorable terms and improve our return on equity. We thank our partner for this opportunity and look forward to future collaborations in Germany and beyond.”
Nofar Energy has achieved another significant milestone in its battery storage operations by securing £152 million in financing for its Cellarhead Battery Energy Storage System (BESS) project in the UK. With a capacity of 300 MW / 624 MWh, this project is being developed by Atlantic Green, Nofar Energy’s UK BESS subsidiary. The financing was arranged by a consortium of leading lenders, including Goldman Sachs, Santander, Bank Hapoalim, and Bank Leumi, with Goldman Sachs serving as the structuring bank, mandated lead arranger, and lender. This collaboration underscores the global confidence in Atlantic Green, the Cellarhead project, and its vital role in advancing the UK’s energy transition.
Nofar Energy is solidifying its position as a global leader in renewable energy and battery storage, with a portfolio spanning 10 GW of renewable energy and 10 GWh of battery storage projects across 10 countries. Of these, 2.4 GW and 1.2 GWh are already operational or under construction. With a strong presence in Europe and a commitment to sustainability, Nofar Energy is known for its innovative energy solutions.The recent agreement with a leading global energy corporation and the successful financing of the Cellarhead BESS project in the UK mark significant milestones. These achievements position Nofar Energy to lead the way in fixed-price contracts for battery storage projects, paving the path for more such agreements. This strategy also enables the company to secure favorable long-term financing, further strengthening its growing portfolio and leadership in the energy storage market.
