Nofar Energy, a leader in renewable energy and battery energy storage systems (BESS), has secured a pioneering 7-year Fixed-Price Flexibility Purchase Agreement (FPA) for its Stendal Battery Energy Storage System (BESS) project in Germany. The 104.5 MW / 209 MWh project marks the first-ever physical fixed-price FPA for a BESS project in Europe. As a result, this agreement eliminates the project’s market risks and guarantees steady, long-term cash flow.

Under this agreement, Nofar Energy will receive €85 to €95 million from 2027 to 2033. There is also an option to begin earlier on a merchant basis before January 2027. This contract structure secures large-scale BESS projects in markets, where storage fixed-price agreements are becoming more common.

Also read: Akaysha Energy Secures Record A$650 Million BESS Financing 

Strengthening Position in Global Energy Storage Market

By landing this deal, Nofar Energy improves its standing in the quickly expanding energy storage market. This transaction represents a shift in the market structures for storage and emphasizes the growing significance of battery storage solutions. 

Nadav Tenne, CEO of Nofar Energy, said, “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.

He added, “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.”

Also read: TotalEnergies Strengthens Renewable Energy Presence with VSB Acquisition and Texas Solar Portfolio Sale

Additionally, Nofar Energy secured £152 million for the 300 MW / 624 MWh Cellarhead BESS project in the UK. Nofar’s UK subsidiary, Atlantic Green, secured funding for the project from Goldman Sachs, Santander, Bank Hapoalim, and Bank Leumi.

Google has announced it is backing clean energy developer,Intersect Power, along with TPG Rise Climate and other investors. The search engine giant is backing Intersect Power in an over $800 million funding round. The support for Intersect Power is a part of its strategy to enhance its data centre capacity to meet the rising demand for cloud services driven by artifical intelligence.

Also read: Kairos Power and Google Partner to Deploy Advanced Nuclear Power Projects for Clean Energy Goals

A Focus on Clean Energy for Data Centers

The collaboration aims to develop industrial parks that combine large-scale data center capacity with purpose-built clean energy plants. Google intends to ease power grid constraints while reducing project delivery timelines by co-locating data centers with carbon-free energy sources.

This approach will aid the company in meeting the growing energy needs of new technologies like Generative AI.

Also read: Google Partners with energyRe for 12-Year Renewable Energy Agreement

Meeting the Growing Demand for Power

As artificial intelligence technologies continue to rise, the difficulty of electrical systems becomes increasingly difficult. They find it hard to keep pace with the rapidly increasing power needs. The growing demand threatens to derail the country’s already vulnerable power grid.

Google is partnering with Intersect Power and TPG Rise Climate to ensure reliable and clean energy for its data centers.

Google’s Role in Clean Energy and Data Centers

As per the deal, Google will be a key customer for the clean energy produced by Intersect Power’s facilities. The Alphabet Inc. corporation intends to establish new data centres that will immediately utilise the clean energy. The initial phase of the project is set to be up in 2026, with total completion expected i

Intersect Power’s Sustainability Commitment

Founded in 2016, Intersect Power specializes in scalable low-carbon energy solutions. As a portfolio company of TPG Rise Climate, the clean energy company is helping transition industries to more sustainable energy sources.

This partnership further supports the climate goals of both Google and TPG Rise Climate.