BayWa re has signed an eight-year operations contract for the Alfeld battery energy storage system in Lower Saxony, Germany.
The agreement was signed with Danish investment fund Scale Fund.
BayWa r.e. said the Alfeld project is set to become Germany’s largest battery energy storage system with 137MW of output and 282MWh of capacity.
The system is currently under construction and is scheduled to begin commercial operations at the start of the third quarter this year.
BayWa r.e. said the battery storage system will primarily provide ancillary services, including primary control reserve, to support grid stability and security of supply.
The company said the contract represents one of its first external standalone battery storage assets.
BayWa r.e. previously operated only its own storage systems within hybrid solar and wind projects.
BayWa r.e. chief operating officer Daniel Gäfke said: “This deal marks a significant milestone for BayWa r.e. in the operational management of battery storage systems in Germany and beyond.”
Data Services managing director Simon Slapka said: “BESS are a science of their own and still a relatively young technology.
“Our approach combines deep technological expertise and advanced digital asset management methods, supported by close collaboration with leading software specialists, like TWAICE.
“We are proud of this achievement, having secured the contract in a comprehensive tender process against strong competition.”
Scale Fund managing director Poul Mogensen said: “Large-scale battery storage is crucial to stabilising the power grid and reliably integrating wind and solar power into the grid, and this is exactly what the Alfeld BESS stands for.
“The battery park will, with its considerable size form part of the critical infrastructure and contribute significantly to the sustainable energy agenda.
“We are very confident that the choice of BayWa r.e. as asset manager and operator due to their strong expertise, proven track record and advanced software will ensure the successful and long-term operation of the Alfeld BESS.”