storage

Germany

NORD/LB secures financing for pioneering large-scale battery energy storage system

Energy transition bank NORD/LB has announced a financing package for the 238 MWh Schuby battery energy storage system (BESS) site in Germany, currently being constructed by Eco Stor, which is set to go live in 2026 and will be one of the country’s largest BESS facilities.
Courtesy of Wikimedia Commons.
Courtesy of Wikimedia Commons.

The site will consist of 64 battery units and 31 power conversion systems, markedly boosting the country’s energy storage capacity and strengthening grid stability.

Meeting Germany’s 2030 target of 100 GW of energy storage will require substantial private capital, underscoring the need for new financing structures that deliver predictable, market-based revenues and enable projects to be developed without government subsidies.

Addressing this need is the project’s pioneering tolling agreement with Alpiq. Under the agreement, Eco Stor will benefit from five years of stable commercial revenue, while Alpiq is granted the right to optimise the BESS site for grid services and trade electricity across the spot and intraday markets. This structure establishes a scalable, replicable model for financing large-scale BESS projects across Germany and Europe – an important step toward expedited technology build-out.

“We are delighted to support Eco Stor in financing its latest large-scale battery energy storage development in Germany” said Florian Hock, Senior Director at NORD/LB. “This project will deliver a meaningful contribution to the expansion of the country’s storage capacity, while strengthening grid stability at a time when flexibility is increasingly critical. The roll-out of battery energy storage systems requires significant capital, and the innovative tolling agreement underpinning this transaction provides a secure and bankable model for financing this essential infrastructure going forward. We see this as an important step towards scaling and accelerating the energy transition in Europe.”

NORD/LB has gained extensive BESS financing experience through the funding of more than 10 projects and portfolios across Europe. Over the coming years, the bank will leverage this experience to support the growing pipeline of BESS projects in both Germany and across Europe, helping to drive the net-zero transition.

“The successful financing of Schuby demonstrates that large-scale battery storage in Germany has reached a level of commercial maturity where projects can be realised with private capital and without subsidies” added Jörn Rohland, CFO at Eco Stor. “Despite ongoing regulatory uncertainty, the market already provides robust revenue mechanisms and bankable structures. By advancing construction early, we were able to accelerate time-to-market and secure grid access, allowing us to deliver critical flexibility to the power system by mid-2026.”

For additional information:

Eco Stor

NORD/LB

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