en.Wedoany.com Reported - Germany-based energy storage system operator Eco Stor has entered into a long-term tolling agreement with power trader and virtual power plant operator Next Kraftwerke for its 300MW/700MWh battery storage project in Förderstedt, Germany. The project is one of the largest battery storage facilities under construction in the country.
Under the agreement, Next Kraftwerke will trade the first phase (100MW) of the project in the day-ahead, intraday, and balancing energy markets starting from November 2026. The project has a duration of 2.3 hours and is being built in three phases of 100MW each, with full commercial operation expected by 2027.
Eco Stor stated that the agreement provides an economic foundation for the long-term operation of the energy storage project and reflects the growing maturity of Germany's large-scale battery storage market.
Construction of the project began in November last year, announced one week after RWE started work on a similarly sized storage project. Once both projects are operational, they are likely to rank as the largest battery storage facilities in Germany. Currently, the largest operational project in the country is Eco Stor's 103.5MW/238MWh Bollingstedt battery storage facility.
With the integration of solar power generation into the grid and the gradual retirement of conventional power plants, significant arbitrage opportunities in Germany's wholesale electricity market have become a key driver for energy storage development.
Like many large-scale battery storage projects, the Förderstedt project connects to the grid under a flexible connection agreement. This agreement imposes certain restrictions on the operation of the battery energy storage system to help operators manage the grid.
Georg Gallmetzer, Managing Director of Eco Stor, recently stated that signing power purchase agreements is crucial for large-scale battery storage projects. Grace Kankindi, Deputy Head of Investment Management for EMEA at Aquila Clean Energy, believes that financial institutions are willing to provide financing for projects without offtake contracts, though she noted that such projects may be smaller in scale than the Förderstedt project.
German regulators recently clarified that battery storage projects commissioned before August 4, 2029, are exempt from grid fees, after previous statements had created uncertainty on the issue.
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