Terra One Climate Solutions GmbH (Terra One), a pioneer in grid-connected battery energy storage systems (BESS) in Germany, has announced an agreement to sell a 310 MW portfolio of project rights for stand-alone battery storage in Germany to Castleton Commodities International LLC (CCI), a global energy trading company and infrastructure investor. The transaction represents a milestone in the still young BESS market in Germany and is one of the first cross-border transactions in this emerging sector.
The portfolio comprises 310 MW of construction-ready and advanced projects strategically designed to support Germany's renewable energy targets by improving grid stability and providing the flexibility required for a sustainable electricity grid. CCI will build, own and operate these facilities through its subsidiary S4 Energy BV.
Large-scale battery storage systems enable the continuous supply of renewable energy and are therefore a crucial part of the energy transition. According to Fraunhofer ISE, Germany alone will need a storage capacity of 178 GWh by 2040 in order to achieve the German government's climate targets. By the end of 2022, less than 2 GWh had been installed.
