Dutch Return Secures €835 Million Financing to Expand German Energy Storage Projects

en.Wedoany.com Reported - On November 4, Dutch energy storage developer Return completed an €835 million portfolio financing, jointly underwritten by Deutsche Bank and Rabobank, to expand the construction scale of battery energy storage projects in Germany and its virtual flexibility asset portfolio. The initial tranche of the financing framework covers 3 energy storage projects in Germany with a combined installed capacity of 117 MW, all of which have entered the construction phase. The company plans to add at least 1 GW of battery energy storage capacity in Germany each year starting from 2027.

The financing comprises multiple financing instruments and incorporates physical battery energy storage facilities and Return's virtual flexibility asset portfolio into a unified financing structure. Eligible new energy storage projects can join the existing framework once they reach financial close and obtain subsequent construction funding support. This financing arrangement covers multiple energy storage assets rather than being a project loan for a single power station.

The first three energy storage facilities included in the financing framework are located in Herzberg, Brilon and Quedlinburg, Germany, all planned with a 4-hour storage duration and a combined storage capacity of approximately 468 MWh. Return estimates that, assuming two complete charge-discharge cycles per day, the electricity released by these facilities over a full year would be equivalent to the annual electricity consumption of approximately 100,000 German households. Subsequent German energy storage projects will gradually join the financing framework as their respective financing progresses.

Return plans to install at least 1 GW of battery energy storage systems in Germany each year starting from 2027, corresponding to an annual planned investment of €750 million to €1.2 billion, with the specific investment scale depending on market conditions. This €835 million financing will support the company in expanding its German energy storage asset portfolio and provide a funding channel for subsequent projects that meet the financing conditions.

This financing is also linked to the battery energy storage flexibility service contracts that Return has already signed. The company previously expanded its long-term energy storage flexibility cooperation with France's Engie in Germany to 400 MW and signed a 100 MW energy storage flexibility service agreement with Centrica Energy. These contracts utilize the battery energy storage capacity in Return's virtual flexibility portfolio to provide charging and discharging dispatch and capacity utilization services to power companies through a unified platform.

Deutsche Bank and Rabobank acted as lead arrangers, underwriters and lending institutions in this transaction, with Deutsche Bank's Luxembourg branch also serving as facility agent and security agent. Rabobank also served as financial advisor. White & Case provided legal services to the lenders, DNV served as technical advisor, and Baringa provided commercial advisory support.