G City Ventures into Energy Storage with Ageera Partnership

Real estate group G City is expanding its operations into the energy storage sector through a long-term cooperation agreement with Ageera (AGEERA). The partnership plans to establish electricity storage systems at approximately 10 of G City's properties in Israel, with a total storage potential of around 300 megawatt-hours (MWh).

The first facility will be built at G City's complex in Rishon LeZion, boasting a capacity of approximately 20 MWh and an estimated investment of 12 million shekels. The economic rationale behind this initiative is to leverage the fluctuating electricity prices. Commercial centers consume significant amounts of power, and by purchasing and storing electricity during off-peak hours when rates are lower, and then utilizing it during peak demand when prices are higher, G City aims to reduce energy expenses and improve operational profitability.

These systems will be managed by Ageera's software, which will analyze real-time electricity tariffs and property needs to optimize battery usage. For G City, this represents an opportunity to generate additional revenue streams from its existing assets beyond rental income and commercial activities. The company already operates solar systems and electric vehicle charging infrastructure at some of its properties and is now adding energy storage.

Looking ahead, G City and Ageera plan to explore expanding this collaboration to G City's international properties. Keren Khalifa, Deputy CEO of G City and CEO of the Group's operations in Israel, stated that the real estate world is continuously evolving, revealing new income streams that can be extracted from properties through smart utilization and new profit channels, expecting double-digit returns. She added that the initial project in Rishon LeZion will be followed by deployments across Israel and potentially globally.

While the companies highlight a significant storage potential of 300 MWh, the financial impact on G City's results remains difficult to assess at this stage, as the systems are planned but not yet fully operational. No forecasts for revenue or expected annual savings have been provided, nor have the full financing terms and profit-sharing arrangements been detailed, making it premature to determine the materiality of this new venture to the group's profits.

Ageera, founded in 2021, specializes in developing and establishing energy storage facilities and managing electricity consumption. The company has a portfolio exceeding 720 MWh, including connected, managed, and in-development facilities. Its clients and partners include Gav Yam, Hazi Hinam, Osher Ad, and Migdalei HaYam HaTikhon. Aviad Bohbut, Chairman and Co-founder of Ageera, noted a growing demand for solutions that maximize the value of storage systems, not just for storing electricity. Ageera anticipates exceeding one gigawatt-hour of storage facilities managed by its platform by 2027.