Partners Group is making an initial €400m equity investment in German battery storage systems (BESS) developer Green Flexibility to scale the business.
The global private markets investor said its initial equity commitment, combined with complementary debt financing, will provide Green Flexibility with over €1bn to invest.
Green Flexibility seeks to develop a portfolio of BESS projects and position itself as a major independent provider of flexibility services, which involves monetising storage capacity through long-term contracts.
David Daum, partner and head of Europe infrastructure at Partners Group, said: “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.”
Igor Makar, member of management for Europe infrastructure at Partners Group, said: “Green Flexibility has strong infrastructure characteristics underpinned by the essential nature of battery storage assets. We were also attracted by Green Flexibility’s innovative approach to the development process, which sets it apart from other market players.
“In line with our entrepreneurial governance model, we have compiled a talented team of operating directors that will support management on achieving our shared vision.”
Christoph Ostermann, CEO of Green Flexibility, said: “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.”
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