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Nofar Energy signs a groundbreaking energy storage contract in Germany

Nofar Energy has concluded a 7-year fixed-price agreement for its Stendal project in Germany. This structuring contract marks a key milestone for the energy storage sector in Europe.

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**A structuring contract for the European market**
Nofar Energy, a company specializing in renewable energy and battery energy storage systems (BESS), has signed a fixed-price flexibility purchase agreement for its Stendal project located in Germany. This project, with a capacity of 104.5 MW/209 MWh, will benefit from predictable and stable revenue over a 7-year period, thus eliminating uncertainties linked to energy market fluctuations.

The contract, estimated at between €85 million and €95 million, will cover the period from 2027 to 2033, with an option for earlier commissioning on a merchant basis before January 2027.

A first in the energy storage sector

This contract, presented as the first physical fixed-price flexibility agreement for a BESS project in Continental Europe, fits into a strategy to strengthen the economic viability of battery systems. Unlike traditional models, such as power purchase agreements for solar and wind projects, this type of agreement remains rare in energy storage but could open new financing opportunities in the sector.

The project benefits from a partnership with a recognized multinational energy company, operating across the entire energy value chain, including storage asset management, flexible production, and electricity trading.

Financial and industrial perspectives

With guaranteed revenue over several years, the agreement brings significant financial advantages to Nofar Energy. This structure facilitates financing under competitive conditions and improves the expected profitability of the project. The approach is particularly strategic in a context of increased volatility in energy markets.

According to the company, this contract could serve as a model for similar projects, consolidating the financial foundation needed for the expansion of energy storage infrastructure.

Expanding storage projects

In addition to the Stendal project, Nofar Energy recently secured £152 million in funding for the Cellarhead project in the United Kingdom (300 MW/624 MWh), in collaboration with international banking players such as Goldman Sachs and Santander. These projects reflect Nofar Energy’s strategy to capitalize on strategic opportunities in key European markets.

These initiatives reinforce the company’s presence in the energy storage sector, a growing domain where innovative financial structures play a decisive role in attracting investors.

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