RWE enters into tolling agreement 50MW/100MWh of BESS capacity in Germany with Terralayr

RWE and Terralayr have signed a tolling agreement for the market optimisation of battery storage assets with a combined output of 50 MW and a total capacity of 100 MWh. Under the five-year deal, which begins in 2026, RWE will take over commercial operations and integrate the storage systems into its energy trading activities.

The agreement covers multiple battery sites operated by Terralayr, all located within the 50Hertz control area. These assets will be aggregated via Terralayr’s flexibility platform to form a virtual battery system.

As part of the tolling arrangement, Terralayr will receive a fixed annual fee. RWE declined to disclose the exact amount when asked by pv magazine Germany. Tolling agreements typically allow asset owners to outsource trading responsibilities while maintaining control over technical operations.

In this case, the contract is structured as a “multi-asset capacity toll”, meaning RWE will market capacity across several individual systems rather than a single large installation.

“A predictable revenue stream is essential for financing battery storage projects,” said Mikko Preuß, chief commercial officer at Terralayr. “Our partnership with RWE creates a new market model with fixed remuneration, opening the door for more investors to access reliable income from storage.”

The structure also allows operators of smaller battery systems to access long-term contracts with guaranteed compensation, something previously available mostly to large-scale storage operators. According to the companies, they are working to make similar fixed-price offerings available to additional battery owners through Terralayr’s flexibility platform.