Romania embraces innovative energy storage solutions with new project

Hagag Europe and Airengy have signed a strategic agreement to develop a groundbreaking energy storage project in Romania. This initiative focuses on utilizing natural saline cavities for compressed air storage, representing a significant leap forward for the energy market in the country.

With an estimated total investment of 55 million euros, the project aims to establish a storage facility with a remarkable capacity of up to 5 GWh. The initial phase will see the construction of a facility capable of storing approximately 200 MWh, with an investment of 4.5 million euros and an operational timeline of 12-18 months from the start of construction.

Hagag Europe and Airengy will each hold a 40% stake in the project, with the remaining 20% controlled by a third partner. Airengy will take the lead in designing, constructing, and operating the storage technology, which leverages their innovative AirBattery system that compresses air using surplus electricity from renewable sources like solar and wind.

As the project unfolds, the second phase will expand the facility's discharge power to approximately 25 MW, ultimately achieving a total storage capacity of around 5 GWh. This phase is estimated to require an additional investment of about 50 million euros.

The use of saline cavities offers significant advantages, including large storage volumes and lower operating costs, enabling the system to function for decades with reduced maintenance expenses. The project's design aligns with Long Duration Energy Storage (LDES) solutions, positioning it as a critical component of Romania's evolving energy landscape.

Tzachi Hagag emphasized that this venture is a major milestone for the Romanian energy market and represents a significant advancement for global energy storage innovation. Meanwhile, Yiftah Ron-Tal described the agreement as one of the most important moments in Airengy’s history, marking its transition toward commercialization.

The project comes at a pivotal time for Romania, which is experiencing a surge in investments in photovoltaic parks and storage batteries. It is expected to offer economic and operational advantages over traditional lithium-ion battery solutions, with capabilities to purchase renewable energy at lower prices and provide rapid balancing services to the grid.

As Hagag Europe continues to strengthen its presence in the local energy market, this initiative could potentially become one of the first large-scale commercial applications of the AirBattery technology, paving the way for a new category of energy infrastructure in Romania.