Nofar USA (Independent Power Producer) has announced the acquisition of a battery energy storage system project carrying approximately 400 MWh of capacity, with construction expected to begin within the next 12 months and commercial operation targeted by the end of 2028.

Project Details and Timeline

The project has already cleared several key development milestones. According to the company, it has secured a site plan approval and executed a grid interconnection agreement. The project is currently in the process of signing a 15-year offtake agreement. Nofar USA put the total project cost at approximately USD 230 million.

The choice of a brownfield site reflects a growing industry preference for developing energy infrastructure on previously used or disturbed land, avoiding the permitting and environmental complications that can accompany greenfield development. With interconnection and site approvals already in hand, the project is positioned as ready to build, reducing development risk relative to earlier-stage assets.

Strategic Context for Nofar USA

The acquisition adds to what Nofar USA described as a platform that already spans solar generation and storage assets across multiple U.S. markets. The company has characterized its approach as moving deliberately on high-quality assets, pursuing both organic development and acquisitions to build a diversified portfolio across regulated and deregulated power markets.

Allon Raveh, Chairman and CEO of Nofar USA, framed the transaction as part of a broader effort to expand the company's footprint in energy storage specifically.

"Energy storage is one of the asset classes we specialize in," Raveh said. "It is essential infrastructure for a reliable and resilient electric grid. But its impact is not just on grid stability; it also enables greater use of renewable energy and provides a cleaner alternative to gas-fired peaker plants."

Raveh also indicated that the company is engaged well beyond this single project, stating that Nofar USA is working with top U.S. developers on dozens of energy storage projects across the country.

Role in the Broader Energy Transition

Battery energy storage systems have become an increasingly critical component of grid infrastructure as renewable energy penetration grows across U.S. power markets. Unlike conventional generation, wind and solar produce power intermittently, creating demand for storage assets that can absorb excess generation and dispatch it when needed.

Projects of this scale are frequently cited by developers and grid operators as a direct substitute for gas-fired peaker plants, which typically run only during periods of peak demand and are among the more carbon-intensive assets on the grid.

Raveh echoed this dynamic in his comments, describing the project as delivering long-term benefits to American consumers by strengthening the grid and supporting greater renewable energy utilization.

Parent Company Background

Nofar USA operates as the U.S. platform of Nofar Energy, a global renewable energy independent power producer with active operations in Israel, Europe, and the United States.

The parent company develops, owns, and operates power generation and energy storage assets and is publicly listed on the Tel Aviv Stock Exchange. Nofar Energy currently carries a market capitalization of approximately USD 3 billion.

The U.S. platform has been built through a combination of direct project development and acquisitions, with a stated focus on diversification across different regulatory structures in American power markets. The company did not disclose the identity of the seller or the specific location of the newly acquired project in its announcement.

Offtake and Revenue Certainty

The pending 15-year offtake agreement represents a significant element of the project's financial structure. Long-term offtake contracts are widely used in the energy storage sector to provide revenue certainty for projects that might otherwise be exposed to volatile wholesale power market prices. A 15-year term, if finalized, would cover a substantial portion of the project's expected operational life and provide a stable foundation for project financing.

The company did not disclose the counterparty to the offtake agreement or the specific terms under which the stored energy would be dispatched or sold. The announcement noted only that the signing process is ongoing.

With construction slated to begin within 12 months and commercial operation planned by end of 2028, the project timeline positions it within a period of significant grid investment across the United States, as utilities and grid operators work to integrate higher shares of renewable generation while maintaining reliability standards.

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