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Return Secures €835 Million for Large-Scale Battery Storage Expansion in Germany
Return has secured €835 million in portfolio financing from Deutsche Bank and Rabobank. This capital will fund ongoing and future large-scale battery storage projects in Germany. The company aims to add at least 1 GW of battery storage capacity annually, with an investment volume between €750 million and €1.2 billion per GW.
Return has secured substantial portfolio financing totaling €835 million, earmarked for the expansion of large-scale battery storage projects across Germany. This funding, provided by Deutsche Bank and Rabobank, will facilitate both ongoing projects and the development of new installations.
The company aims to add at least 1 GW of battery storage power capacity annually in Germany starting next year. Achieving this yearly capacity is projected to require an investment volume ranging between €750 million and €1.2 billion, subject to market conditions. Currently, Return has three storage projects under construction, collectively providing 117 MW, all designed as four-hour storage systems.
Return's strategy involves a portfolio financing approach, which pools multiple assets within a single financing structure. This method allows for the simultaneous financing of various systems, significantly streamlining the process by avoiding the need for separate financing procedures for each individual site. This approach has already been successfully implemented for the company's projects in the Netherlands.
Return's project pipeline has already seen considerable expansion. Recently, its contracted battery flexibility increased to 400 MW through a partnership with Engie. Furthermore, an agreement for 100 MW was concluded with Centrica Energy. The company also maintains partnerships for flexibility services in other European markets with energy companies such as Vattenfall, Essent, and Eneco.
Daniel Witvoet, CFO at Return, emphasized the importance of this approach, explaining that with the increasing need for energy flexibility, it is essential to enhance both battery storage capacity and its funding mechanisms. He further explained that combining physical infrastructure financing with their virtual flexibility model enables more efficient expansion, responding to evolving customer needs.
Source: ESS News
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