Global private markets company Partners Group has committed €400m ($411.6m) in equity to green flexibility, a German developer and operator of large-scale battery energy storage systems (BESS).
The investment, complemented by debt financing, will provide green flexibility with €1bn to support Europe's energy transition.
The company's expansion is timely, as Germany faces increased electricity generation fluctuations due to the growth of renewable energy sources and the phasing out of baseload capacity.
Partners Group Infrastructure Europe head and partner David Daum stated: “green flexibility will act as a key enabler of the energy transition in Germany by facilitating the integration of intermittent renewable energy into the country’s power grid. The company represents an exciting opportunity to partner with a highly experienced, proven management team to build a battery storage platform in the largest power and electricity market in Europe.”
BESS technology is essential to store surplus energy and release it when demand peaks, stabilising the grid and mitigating energy costs.
The company aims to pursue a pipeline of BESS projects, with initial projects already under construction, and position itself as an independent flexibility provider. It plans to secure long-term contracts to monetise its storage capacity.
With advanced software and artificial intelligence, green flexibility is set to streamline project development and construction, capitalising on Germany's increasing reliance on renewable energy and the need for grid flexibility.
green flexibility CEO Christoph Ostermann stated: “BESS is widely considered the most flexible technology for providing a versatile and efficient energy storage solution, making it a key component in modernising the energy grid. In addition, the technology can be deployed faster than other alternatives, which is crucial for meeting immediate grid stability needs. As an experienced infrastructure investor and business builder, Partners Group is the right long-term partner for us as we look to scale the company.”
With $27bn in assets under management within its infrastructure business, Partners Group positions itself to support green flexibility's growth. The firm's legal advisory was provided by A&O Shearman.
