Enlight doubles the scope of energy storage in the project in New Mexico

The energy company Enlight reports the doubling of the storage component in the Artisco project in New Mexico from 600 megawatts to 1,200 megawatts. In this way, it will become the company’s largest storage project that is currently under construction. The expected start of electricity production from the project is the summer of 2024.

The project began in April 2021 through the collaboration of the Israeli company Enlight with the company PNM Resources, the largest energy supplier in New Mexico in the United States that supplies electricity to more than half a million households and businesses. The investment needed to establish the project is 2.8 billion shekels, with the company expecting that the revenues will amount to 180 million shekels per year.

The electricity produced by Viager as part of doubling the project will receive a rate that is 24% higher than the rates for the first 600 megawatts to be built. This increase is added to the company’s report from July of a 24% increase in the price of the electricity produced in the project. In addition to doubling the storage facility, Enlight will also increase the production capacity in the project by purchasing solar panels from the Indian company Waaree Energies, at a cost of 151 million dollars that will be used for Artisco and other projects. Waaree is also the supplier of solar panels for Anlight’s Apex Solar project in the state of Montana in the USA, in which Bank of America invested, among others.

The establishment of energy storage facilities is a necessary thing for advancement Renewable energy projects and solar energy in particular, due to the ability of the solar panels to produce electricity only in some hours of the day and their sensitivity to factors such as cloudiness. The storage facilities make it possible to use during the evening and night the excess energy produced by the solar panels during the day. However, there is a challenge regarding the economic viability of storage facilities without government subsidies.

In the US, the use of storage facilities received a significant boost with The passage of President Biden’s Inflation Reduction Act last august The law that passed after many difficulties in the Senate, expanded the definition of renewable energies eligible for tax discounts and thus also included the storage facilities. Energy storage projects, due to the legislation, will receive tax benefits that can reach 30% of the capital costs needed to build the facilities.

The importance of building storage facilities is significant in Israel due to the government’s desire to increase production through solar energy. Currently, the system management company Nega is writing a plan for the optimal deployment of storage facilities in Israel.