en.Wedoany.com Reported - Energy storage system operator Eco Stor has entered into a long-term tolling agreement with power trader and virtual power plant (VPP) operator Next Kraftwerke for its 300MW/700MWh project in Germany's Förderstedt, one of the largest battery storage projects under construction in the country.
Under the agreement, Next Kraftwerke will trade the first phase (100MW) of the project on the day-ahead market, intraday market, and balancing energy market 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 storage project, while also highlighting the growing maturity of Germany's large-scale battery storage market.
Eco Stor began construction of the project last November, just one week after RWE announced the start of construction on a similarly sized storage project. Once both projects are operational, they are likely to be tied as the largest battery storage projects in Germany. Currently, the largest operational project in Germany is Eco Stor's 103.5MW/238MWh Bollingstedt battery storage facility.
With more solar power installations connecting to the grid and the gradual retirement of conventional power plants, significant arbitrage opportunities have emerged in Germany's wholesale electricity market, which is the core driver behind the country's energy storage development.
Like many large-scale battery storage projects, the Förderstedt battery storage project uses a flexible connection agreement (FCA) to connect to the grid. The FCA imposes certain restrictions on the operation of the battery energy storage system to help the storage system operator manage the grid.
Recently, Eco Stor Managing Director Georg Gallmetzer stated in an industry media interview that signing power purchase agreements is crucial for large-scale battery storage projects.
On the other hand, 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 likely refers to battery storage projects smaller than Förderstedt.
Recently, German regulators have clarified that battery storage projects commissioned before August 4, 2029, are exempt from grid fees. Previous statements had created uncertainty on this issue.
