Enlight and Rapac Energy Sign 12-Year, $135 Million Power Purchase Deal

Enlight Energy and Rapac Energy have signed a 12-year agreement for the purchase of electricity, valued at approximately NIS 495 million (about $135 million). The electricity will be generated and stored by a portfolio of solar facilities integrated with energy storage systems, developed by Rapac Energy. These facilities are expected to operate under the high-voltage market model, providing a combined solar generation capacity of about 57 megawatts and an energy storage capacity of approximately 225 megawatt-hours.

Some of the projects are already under construction, with the rest slated to begin construction in 2027, pending necessary building permits. The agreement was made with Enlight Enterprises, Enlight's green electricity supply arm. For Enlight, this deal expands its electricity sources for commercial and industrial clients. For Rapac Energy, the long-term contract enables it to advance its project pipeline and secure revenue streams upon grid connection.

The integration of solar generation with storage allows for greater flexibility in electricity supply. The facilities can store solar power generated during daylight hours and release it during periods of high demand. This transaction aligns with the liberalization of the electricity market and regulations permitting private generation and storage facilities to operate within the market model.

Honi Kabilo, VP of Revenue Management and Product Development at Enlight, stated that the agreement is another step in expanding the company's green electricity supply to commercial and industrial consumers, meeting growing market demands. He highlighted how smart management of various generation and storage sources addresses fluctuating customer electricity needs. The combination of Rapac's projects and Enlight's extensive experience in electricity sales and management creates added value for all parties.

Rapac Energy, a wholly-owned subsidiary of Rapac Communications and Infrastructure, is the group's renewable energy development arm. Its activities include initiating, constructing, and operating solar facilities, some with integrated storage systems. Itai Hagai, CEO of Rapac Energy, called the deal a significant milestone for developing the company's high-voltage project portfolio, demonstrating its ability to initiate and advance renewable energy and storage projects. He emphasized the importance of collaborations with leading industry players to connect the company's development capabilities with substantial green electricity demand, expecting the projects to generate significant, stable, and long-term revenues starting in 2027.