Akon Energy Connects 70MW Battery Storage in Romania, Boosting Project Revenue
Akon Energy has successfully connected a 70-megawatt (MW) / 141-megawatt-hour (MWh) battery storage system to the electricity grid at its Parau 1 project in Romania. This marks the first time the company has implemented its "Co-location" strategy, adding energy storage to an existing solar facility to enhance returns. The solar component of Parau 1, with a capacity of 92 MW, has been operational since 2024. With the addition of the storage system, the project's total installed capacity now stands at 162 MW.
Akon Energy invested approximately 21.3 million euros in the storage component, bringing the total project cost to an estimated 84.7 million euros. The company forecasts that the storage system alone will generate average annual revenues of about 9.7 million euros and EBITDA of roughly 8 million euros over the first five years of full operation. This projected annual EBITDA represents about 37% of the storage component's establishment cost, highlighting the growing trend of renewable energy companies integrating storage with solar projects.
Including the solar facility, Akon Energy estimates Parau 1 will yield annual revenues of approximately 18.4 million euros and EBITDA of about 14.7 million euros. The storage system is designed to be charged not only from the adjacent solar plant but also directly from the grid. This allows Akon Energy to capitalize on price differentials, charging batteries during low or negative price periods and discharging them when prices are higher, thus generating revenue beyond solar production hours.
This development is significant as Akon Energy seeks to demonstrate the value of its substantial project pipeline to investors. Despite reporting increased revenues in the second quarter, the company also saw its net loss nearly double to approximately 28.1 million euros and reduced its 2026 electricity sales forecast due to an average four-month delay in connecting around 400 MW of projects. The successful grid connection of Parau 1 is crucial for converting future revenue potential into actual income and cash flow.
Akon Energy is advancing storage systems in other Romanian projects, with an additional 521 MW of storage capacity under construction or ready for connection. The company holds 743 MW of connected or ready-to-connect projects and an additional 861 MW under construction in Romania. The integration of storage is a key part of Akon Energy's strategy to expand its renewable energy portfolio, with further storage systems planned for projects like Iancu Jianu and Parau 2 in Romania.
