KGAL Investment Management has invested in a Battery Energy Storage System (BESS) in Grevesmühlen, Mecklenburg-Western Pomerania, for its renewable energy fund KGAL ESPF 5.
The battery storage facility is located close to a substation and is nearing completion, the manager said. Commissioning is scheduled for mid-2026.
The seller and future partner is FENECON, a German specialist in hardware and software for energy storage solutions, which will continue to develop the project until completion and will subsequently take over its operation.
The project has a capacity of 17.3MW and a storage capacity of 48.8MWh. As a standalone storage facility, the system can be deployed to release electricity at short notice to balance price fluctuations in day-ahead and intraday trading, and is intended to provide balancing energy, which is required to stabilise the electricity grid in the event of short-term deviations in supply and demand.
Hauke Sievers, the transaction manager responsible at KGAL, said: “Battery storage plays a central role in the successful continuation of the energy transition, as it better aligns renewable generation with electricity demand over time.
“We have specifically invested in a BESS project that will come online in the short term, as this allows for significantly more reliable revenue planning than projects with longer implementation periods. Our battery storage facility can benefit from the currently attractive spreads – the difference between purchase and sale prices on the electricity market.”
KGAL said that with this BESS investment, it is further diversifying the ESPF 5 portfolio. The article 9 fund now comprises 20 assets and is broadly diversified across regions, generation technologies, development phases and offtake agreements, the manager said.
To read the latest IPE Real Assets magazine click here.
