Germany: Nofar Energy claims first physical fixed-price toll for BESS in Continental Europe

LinkedIn
Twitter
Reddit
Facebook
Email

IPP Nofar Energy has agreed a Flexibility Purchase Agreement (FPA) for a 209MWh BESS project in Germany, the first of its kind in Continental Europe, it claimed.

The FPA or tolling agreement, similar to a power purchase agreement (PPA), is with an unnamed ‘major global energy corporation’, the Israel-headquartered developer and independent power producer (IPP) said today (11 December).

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The deal is for its Stendal battery energy storage system (BESS) project in Germany, a 104.5MW/209MWh system, and runs from 2027 to 2023 with an option to commence earlier on a merchant basis before January 2027. It appears to be the same project that Nofar revealed inverter and BESS company Sungrow would provide the technology for, in May 2024. A commercial operation date (COD) has not been given.

Nofar claimed that the FPA is the first physical, fixed priced deal for a BESS in Continental Europe. Physical means that the FPA is tied to a specific project, rather than a virtual one which can be served with energy from the broader energy market.

The FPA removes market risk for Nofar Energy, ensuring long-term cash flow amounting to €85-95 million (US$90-100 million) over its seven-year lifetime. Such structures are a reliable way to make large-scale BESS bankable in volatile energy markets, it said, but are in their infancy for BESS, while PPAs are normal for wind and solar.

Tolling agreements like this have existed for years in the Australian and US markets, particularly enabling the proliferation of large-scale BESS in sunny southwest states like California and Arizona, but are less common in Europe. The UK market has started to move towards these in light of market volatility, with deals secured recently by BESS owner-operators Gresham House and BW ESS.

Energy-Storage.news heard from optimisers Flower and Capalo AI about the increasing interest in toll deals in Europe earlier this year (Premium access).

2 December 2025
NH Collection Vittorio Veneto, Rome, Italy
Across two packed days, the Summit focused on three core themes: revenue & trading, the lifecycle of the battery, and optimisation tools. Attendees explored innovative strategies for enhancing asset performance and longevity, with a spotlight on key markets like Germany, Italy, and the UK. Stay tuned for details on the 2025 edition of the Battery Asset Management Summit Europe, where we’ll continue to chart the path forward for energy storage asset management.
24 February 2026
InterContinental London - The O2, London, UK
This isn’t just another summit – it’s our biggest and most exhilarating Summit yet! Picture this: immersive workshop spaces where ideas come to life, dedicated industry working groups igniting innovation, live podcasts sparking lively discussions, hard-hitting keynotes that will leave you inspired, and an abundance of networking opportunities that will take your connections to new heights!

Read Next

May 21, 2025
Regulators in Germany are considering two big reforms that could improve the business case for BESS, while developer-operator Green Flexibility has announced its first major project.
May 20, 2025
Developer and independent power producer (IPP) Zelestra has ordered 1GWh of BESS technology plus PCS equipment from Sungrow for a project in Chile.
Sponsored
May 19, 2025
Goldwind discusses how its unmatched system-level expertise from the renewables space makes it ideally placed to solve the key industry challenges it sees emerging in energy storage.
May 16, 2025
The battery storage arm of Canadian Solar expects to make between 7GWh and 9GWh of shipments this year, with the final figure dependent on trade policy developments.
May 15, 2025
Utility and power generation firm Engie has started construction on a 100MW/400MWh BESS project in Belgium, for which it has enlisted system integrator NHOA Energy to provide the BESS.

Most Popular

Email Newsletter