Infrastructure investor Palladio Partners has entered into a strategic partnership with Voltfang, a German company specialising in energy storage systems, to develop and operate large-scale battery projects in Germany. The programme, backed by a fund dedicated to institutional investors, aims for a total investment volume of EUR250mn ($267mn) by 2029.
Large-scale projects in preparation
The first projects resulting from the partnership are expected to reach construction readiness by the end of the year. As the operational partner, Voltfang will be responsible for planning, building, operating and maintaining the facilities. Palladio Partners will oversee financing and commercialisation, relying on a fund focused on transforming German energy infrastructure. The fund primarily attracts capital from pension schemes, insurance companies and retirement institutions.
Aiming to stabilise the power grid
The storage systems are designed to enhance grid stability and security, especially during periods of peak solar electricity production. These batteries will be integrated into both the balancing energy market and the wholesale energy market. The partnership will also include the use of second-life modules, a technology developed by Voltfang from unused batteries initially intended for electric vehicles.
A growing market
The rapid expansion of variable renewable energies in Europe increases the need for effective storage solutions. According to estimates from the Fraunhofer Institute for Solar Energy Systems (ISE), Germany will require 100 gigawatt hours (GWh) of storage capacity by 2030 and around 180 GWh by 2045. Currently, Germany’s installed large-scale storage capacity stands at only 3 GWh.
Favourable timing for investors
The ongoing decline in technology costs and growing demand for storage solutions strengthen the sector’s appeal to investors. “This is a particularly attractive time to be investing in battery storage expansion,” said Oliver Sauer, Partner at Palladio Partners. Voltfang founder David Oudsandji added, “Projects of this scale require scalable technology expertise and solid financing.”
