ECO STOR, Banco Santander and NORD/LB have closed financing for a 300MW/718MWh battery energy storage project in Förderstedt, Saxony-Anhalt, Germany, in what is described as the largest battery storage system realised and financed in the country to date.

The project is scheduled to enter full commercial operation in 2027.

ECO STOR said the facility is the largest of its kind in Germany so far and forms part of its broader efforts to expand energy storage capacity and help close the country’s storage gap.

The battery system will have a capacity of 300MW and 718MWh of storage, significantly scaling up grid-scale flexibility in the German power system.

According to the companies, the project will support renewable energy integration, help stabilise power grids and strengthen security of supply.

The development is backed by a long-term flexibility tolling agreement with Next Kraftwerke, designed to optimise the battery across energy markets and balancing markets.

“As one of the world's leading financiers of renewable energy and sustainable infrastructure projects, we are delighted to support the financing of the Förderstedt battery storage project,” said Bart White, global head of energy structure finance at Santander CIB.

“Battery storage systems are becoming increasingly important for the transformation of the energy markets.”

“We are pleased to support ECO STOR by financing the project in Förderstedt,” said Florian Hock, senior director at NORD/LB.

“The expansion of the energy transition in Germany and Europe will depend to a large extent on large-scale battery storage projects.”

“The successful financing of Förderstedt sends a strong signal to the market,” said Jörn Rohland, CFO of ECO STOR.

“Projects like Förderstedt create much more than additional storage capacity.”

The company added that the project also provides critical infrastructure to improve grid stability, enable more efficient integration of renewables and enhance security of supply, supported by private investment and commercial financing structures.

Clifford Chance acted as legal adviser to the lenders on the transaction, while Hogan Lovells advised ECO STOR.