Energy storage provider Return has obtained €835m ($939m) in portfolio financing underwritten by Rabobank and Deutsche Bank to support the expansion of its battery storage capacity in Germany.
The funding aims to bolster Return’s Virtual Flexibility Portfolio (VFP), which provides energy flexibility services to customers seeking to manage varying electricity demands and integrate renewable energy.
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Three German battery storage projects with a total capacity of 117MW are covered under the new financing arrangement.
According to Return, if operated with four-hour batteries running two full cycles per day, these sites could deliver enough electricity annually to match the consumption of about 100,000 German households.
The framework allows for the inclusion of additional eligible projects as they reach financial close.
Return plans to install at least 1GW of battery storage annually in Germany starting from 2027.
Annual investment is expected to range between €750m and €1.2bn, subject to market conditions.
The company reports increasing customer demand for flexibility as Germany incorporates more wind and solar generation into its electricity system.
The VFP model aggregates multiple battery storage assets into one virtual portfolio, giving customers access to scalable flexible capacity through a single platform.
Commercial partners in Germany include ENGIE, which recently expanded its contracted flexibility with Return to 400MW, and Centrica Energy with an agreement for 100MW.
Return also notes partnerships with energy companies such as Essent, Vattenfall, and Eneco in other European markets.
Return chief financial officer Daniel Witvoet said: “As demand for energy flexibility grows, we need to scale not just our battery storage capacity, but also the way we finance it.
“By bringing together physical infrastructure financing and our virtual flexibility model, we can expand more efficiently and respond to our customers’ evolving needs.
“This is an important step towards our ambition to become a leading independent provider of energy flexibility in Germany.”
Rabobank served as financial advisor on the financing, with Hogan Lovells Cadwalader and White & Case advising the borrowers and lenders respectively.
Other involved advisors included Baker McKenzie, Baringa, DNV, EY, EY Parthenon, and Marsh.
