Floor‑agreement structure anchors 140 MW Alytus BESS deal in Lithuania

Czech-headquartered technology company Second Foundation has partnered with BLEnergy and Shamir Energy on one of Lithuania’s largest standalone battery energy storage systems (BESS), signing an optimization agreement for a to-be-built 140 MW facility in Alytus, Lithuania, south of Kaunas. 

Commissioning of the project is planned for 2027; BLEnergy told ESS News the Alytus BESS is expected to begin commercial operation in the third quarter of that same year. The company also stated that investment costs for the project are approximately €60 million. 

Rather than a conventional optimization contract, the parties agreed on a floor agreement – a revenue-protection mechanism where a minimum level of return is guaranteed but allowing for a share in higher returns. This structure is a growing trend in Europe’s battery storage market.

The Alytus project combines operational and trading capabilities from the three partners. BL Energy and Shamir Energy bring development and asset-management experience, while Second Foundation contributes algorithmic optimization, along with monetizing experience across energy and ancillary service markets. 

About the companies involved 

Israel-based storage developer BLEnergy, part of the Blilious Group, has a project pipeline exceeding 7 GWh in both the Israeli market and several European countries. It has additional facilities in various stages of planning, construction, or operation. The company’s storage systems are based on market-leading technology from CATL.  

Shamir Energy is also Israel based, developing renewable energy projects with a pipeline of approximately 410 MW of solar, and 2 GWh of storage. 

Second Foundation operates in nine locations from the USA to Japan, boasting more than 500 analysts, engineers, data scientists, and technology experts managing more than 3 GW of renewable energy – 600 MW of BESS is under construction according to the company.