Unchaining BESS Capital by Combining Stability and Return

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Recording of Tuesday, May 06, 2025 | The smarter E Europe | Conference Program | Language: English | Duration: 6:60 .

TerraLayer Explores Unlocking Capital for Battery Investments Through Stability and Return Management

Mikko Preuss, Vice President Strategy & Commercial at terralayr Germany GmbH & Co. KG, discusses the potential for unlocking capital in battery asset investments by balancing stability and returns. As an owner and operator of battery assets with expertise in financing and managing such investments, terralayr emphasizes revenue management as crucial to successful operations. Grid-scale batteries thrive on market volatility due to high energy price spreads; however, this poses challenges for infrastructure investors who prioritize stability over risk associated with volatile markets. Preuss identifies three shortcomings hindering growth: limited access to contracted revenues due to small asset sizes (sub-20 megawatts), complexity in managing merchant revenue stacks compared to renewable production assets like PV parks, and increasing demand from off-takers seeking flexibility amid rising re-dispatch curtailments. To address these issues, terralayr has developed a two-sided platform connecting physical battery assets with diverse off-takers via one framework agreement/API. This enables asset owners to diversify their off-take agreements beyond physical constraints while optimizing financial structures through both stable contracted revenues and merchant mode operation benefits. The nascent tolling market is expected to grow significantly based on recent experiences closing multiple tolling agreements involving various asset pools.

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Mikko Preuss
Vice President Strategy & Commercial
terralayr Germany GmbH & Co. KG
Germany

The utility-scale BESS market in Germany has experienced significant growth in the last two years. Typical project size has increased by an order of magnitude over that timeframe from 20 MW to 200 MW. The number of developers in this sector has increased at a comparable rate. But how can developers make key decisions around project design when they are often not the long-term asset owners? How integrated are developers with investors during the project design phase, and what could be done more effectively?In this panel, major players from the investor and developer communities will discuss project design, commercial models including the rise of contracted off-take agreements and expected returns in this fast-growing market.

Further Talks of this session:

Speaker

Christopher Bryan
Director
Apricum - The Cleantech Advisory
Germany

To Talk

Speaker

Martin Daronnat
Head of Flexibility & Structured Origination Germany
Engie
Spain

Recording was not authorized for publication.

Speaker

Thomas Osburg
Sales & Origination Manager New Energies
Deutsche Kreditbank AG
Germany

Marcel Schepers
Product Manager Flexibility Marketing
EnBW Energie Baden-Württemberg AG
Germany

Recording was not authorized for publication.

To Talk

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