Israeli Firms Invest €60 Million in Bulgarian Electricity Storage Facility
Translated & summarized from Calcalist by baba
Israeli companies Clal Mobil Energy and Tamnat have launched a 60 million euro electricity storage facility in Silistra, Bulgaria. The facility, with a capacity of 317 megawatt-hours, utilizes BYD batteries and is designed to profit from price differences between peak and off-peak electricity hours. The project is expected to yield returns within three years, and the companies plan further expansion in Eastern Europe. Tamnat is also preparing to issue bonds on the Tel Aviv Stock Exchange.
The story in 5 lines · by baba
- Clal Mobil Energy and Tamnat invested 60 million euros in a new electricity storage facility in Bulgaria.
- The facility has a storage capacity of 317 megawatt-hours and uses BYD batteries.
- The project aims to profit by buying low-cost off-peak electricity and selling it at higher peak prices.
- Clal Mobil Energy plans further expansion in Eastern Europe, including renewable energy and data centers.
- Tamnat Energy is preparing to raise 100-200 million shekels through a bond issuance in Tel Aviv.
Clal Mobil Energy, formerly Enerpoint, and Tamnat have launched a large-scale energy storage facility in Silistra, Bulgaria, near the Romanian border. The facility boasts an impressive storage capacity of 317 megawatt-hours and a power output of 150 kilowatts, utilizing batteries from China's BYD. The total investment in this project amounts to approximately 60 million euros, with partial financing provided by Bulgaria's DSK Bank. Additionally, the project is set to receive an 8 million euro grant from the European Union. The companies have secured land usage rights for a period of 49 years.
Clal Mobil Energy, owned by the Haralap family, holds a 60% stake in the venture. It leverages Enerpoint, a renewable energy company acquired by Clal Mobil in 2022, which has been expanding its operations from Israel into Eastern Europe. Tamnat, controlled by Major General (Res.) Israel Ziv, has a broader European presence, including development projects in Romania, Serbia, Bulgaria, and Germany, and also acts as a contractor for constructing other projects.
The facility operates by purchasing surplus electricity from Bulgaria and Romania during off-peak hours at lower prices and selling it during peak demand periods, in addition to providing grid balancing services. Clal Mobil reports that peak electricity prices are four times higher than off-peak prices, projecting an investment payback period of about three years. The storage project is connected to Bulgaria's electricity grid management company, ESO, via high-voltage lines.
Clal Mobil and Tamnat leased the land in February of this year and rapidly demolished old structures at an airport site to establish the storage project. Aviv Pepper, CEO of Clal Mobil Energy, emphasized the importance of rapid market entry in Eastern Europe, stating that "those who manage to get ahead of the market will be able to recoup their investment." He also revealed Clal Mobil Energy's plans for further expansion in Eastern Europe, including the development of electricity generation and storage facilities, focusing on solar energy, storage, and natural gas-powered "peaker" plants for peak demand. The company is also planning data center construction.
Industry experts suggest that such extensive European investments may necessitate public financing, such as bond or stock offerings, potentially leading Clal Mobil Energy to transition from a private entity in the long term, unlike its parent company, a major Israeli vehicle importer that has historically avoided public capital raising. Tamnat Energy, Clal Mobil's partner, is already planning to raise between 100 and 200 million shekels through a bond issuance on the Tel Aviv Stock Exchange, with its owners valuing the company at half a billion shekels.
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