Israel’s Solegreen Buys Tadiran Energy Storage Systems For $130M

Israeli renewable energy company Solegreen, signed a $130 million framework agreement with Tadiran Group to purchase energy storage systems totaling 600-megawatt hours from Tadiran’s subsidiary Aviem, for its solar energy installation projects, Globes reported.

Aviem has around 50 years of experience in developing electrical energy systems such as uninterruptible power systems, power suppliers and chargers, batteries, frequency converters, and electric vehicle charging systems for residential buildings. The company was acquired by Tadiran Group in October 2021 for NIS 30 million ($8.9 million). 

Aviem will design the energy systems according to Solegreen’s specification and include an integrated solution based on storage systems manufactured by German solar energy storage company SMA. 

Aviem will be responsible for the efficiency, availability, repairs, and storage capacity according to the agreed upon values in the framework agreement. The overall framework agreement also serves as an agreement to provide a warranty, preventative maintenance, and augmentation services for the systems designed by Aviem, for a basic period of five years. 

Founded in 2000, Solegreen specializes in the development, planning, construction, financing, and management of power generation facilities based on renewable energy and operates solar projects in Israel, Italy, Germany, Greece, and the U.S. It is a publicly traded company on the Tel Aviv Stock Exchange. Solegreen initiated its solar projects after its win in a competition helmed by the Israel Electric Authority for its project combining photovoltaic electricity production with energy storage capacity.

“We are reporting today on a framework agreement for implementing the purchase of a significant volume of storage systems,” Solegreen CEO Tom Shafran told Globes. “This agreement is expected to provide a solution to the company’s overall needs in the field of storage, for projects that Solegreen will build in Israel over the next two years. After a long and careful tender process conducted by Solegreen, which focused on an overall energy solution package, the company has selected the solution proposed by Tadiran, which was preferable on all levels to the other proposals.”

“The deal with Solegreen proves that acquiring Aviem has been very successful for the Group, and this is in a period of less than a year since the signing of the transaction,” added Moshe Mamrud, CEO and controlling shareholder of Tadiran. “We are proud to cooperate with a strategic partner like Solegreen, in a market with huge potential like the storage market. The aim of Tadiran was, and still is, to create a complete solution for all those who need energy storage. We will also continue to work to locate business and cooperation opportunities in the energy market over the coming year.”

“This is the largest ever deal in the energy storage market in Israel,” said Ran Abudi, CEO of Aviem. “Several months ago, we set a target of being the leading and most significant player in the energy storage market in Israel and indeed, in a relatively short time, the first target has been achieved. Solegreen was impressed by the capabilities of Aviam/Tensor and its knowhow and experience of more than 50 years, combined with engineering and implementation capabilities of the highest technological levels.”