Centrica Energy and Zelestra sign tolling agreement for 297 MWh project in Germany

Zelestra has signed a tolling agreement with Centrica Energy for a 99 MW/297 MWh BESS that’s scheduled for full commissioning in the second half of 2028. Construction is scheduled to begin at the project in Hilgermissen, Lower Saxony, in 2027.

Under the physical tolling agreement, Centrica Energy will optimize and trade the contractually agreed capacity across the market, the companies said. Participation in day-ahead and intraday markets as well as for control energy and additional services in Germany is planned. However, the companies did not reveal the capacity covered by the tolling agreement.

The project will be developed and built by Zelestra, and the developer is expected to remain the owner of the battery storage and will operate the plant.

“This agreement with Zelestra is an important milestone for Centrica Energy in Germany and a further step towards the implementation of our strategy,” said Cassim Mangerah, managing director of Centrica Energy. “The continued growth of our German flexibility portfolio demonstrates the demand for our optimization capabilities and further strengthens our position in one of the most dynamic flexibility markets in Europe.”

The tolling agreement is viewed by Zelestra as a vote of confidence in your own battery storage platform. The company has a project pipeline comprising more than 2 GW of solar, wind power and energy storage facilities throughout Germany, which are currently in development.