German plans for 390 MWh merchant batteries

Plans have been announced for a 308 MWh battery energy storage system (BESS) in the German state of Lower Saxony and for an 81 MWh standalone BESS in the Sauerland region, both of which will operate on a merchant basis.

German bank Berenberg said the subordinated, “junior” loan it is providing to fund a 137.5 MW/308 MWh BESS in Alfeld is structured in a way that reflects the risk of uncontracted BESS revenue, from sources such as energy trading.

The Hamburg-based bank announced it will lend the money – which would only be repaid after senior loans were settled, in the event of a default – from “several” of its Berenberg Green Energy Debt Funds, to Danish BESS and solar developer Obton.

No date was given by Berenberg for activation of the BESS, nor was a project cost supplied by the lender but the bank’s press release announcing the loan stated Obton “primarily” develops sites worth at least €10 million ($11.4 million).

Berenberg stated the “two-hour standalone battery [energy] storage system is designed to capture revenue potentials beyond the capabilities of one-hour battery [energy] storage systems.”

Torsten Heidemann, head of infrastructure and energy at Berenberg, said, “Battery [energy] storage will play a crucial role to enable the energy transition as increased [electricity] demand-flexibility and grid extensions will still take time to support … renewables build-out targets. To us, it is this fundamental driver which makes investments in [energy] storage meaningful and attractive from both an ESG [environmental, social, and corporate governance] and risk perspective.”

Elsewhere in Germany, Paderborn-based energy storage provider Intilion has announced it will supply an 81 MWh standalone battery for Umspannwerk Himmelreich GbR, near the Essentho electricity substation in the Sauerland.

Intilion said, in a post on its LinkedIn social media account yesterday, the battery will be commissioned in the third quarter of next year.

The energy storage business has been contracted to operate the site under a long-term deal for owner Umspannwerk Himmelreich.

Intilion stated, “An experienced direct marketer will take care of the [battery’s] operation on the electricity exchange, to generate revenue and reinvest [it] in future renewable energy projects.”