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Energy Storage

Thursday
29 May 2025

RWE to Market Virtual German Battery

29 May 2025  by renews   
In 2026, RWE, a major energy company, will begin managing the market optimization of a 50MW or 100MWh virtual battery from Terralayr in Germany under a five-year agreement. This virtual battery, aggregated through Terralayr’s flexibility platform, combines multiple battery storage systems within the 50Hertz transmission system operator’s control area. The partnership enables RWE to integrate this capacity into its energy trading operations, enhancing its ability to provide flexible energy solutions.

Under the tolling contract, Terralayr receives a fixed annual payment for providing storage capacity. Unlike traditional tolling agreements, which link directly to a single battery system, this “multi-asset capacity toll” connects multiple battery systems via Terralayr’s platform. This innovative structure allows operators of smaller battery systems to secure long-term agreements with stable remuneration, a benefit previously limited to larger systems. It also improves system performance, extends service life, and reduces operational risks by distributing capacity across multiple units.

Bart Beljaars, head of commercial asset optimization for Continental Europe at RWE, stated: “Batteries are becoming increasingly important for a stable energy supply. Terralayr’s virtual battery perfectly complements our own, rapidly growing battery and generation portfolio. Through the cooperation with Terralayr, we can provide flexibility from RWE’s own batteries as well as from customer batteries even better where it has the greatest benefit.”

Mikko Preuß, chief commercial officer at Terralayr, said: “A stable revenue expectation is a crucial building block for the financing of battery storage projects. Through the cooperation with RWE, we can establish a new market standard with fixed remuneration structures and thus give storage investors access to these stable revenues. We offer customers of storage capacity such as RWE all the advantages of a physical battery storage system without our partner having to worry about the physical systems.”

The agreement simplifies integration through a single technical connection, ensuring consistent performance across diverse storage systems. Both companies aim to expand this model, marketing additional Terralayr storage capacities in Germany and developing fixed-price products for other battery investors and operators via the flexibility platform.

RWE, with extensive experience in battery storage, operates 370MW of capacity in Germany and over 1200MW globally. Terralayr, founded in 2022, develops and aggregates battery storage systems, offering flexibility services to energy producers, traders, grid operators, and large consumers like data centers. This collaboration supports Germany’s transition to sustainable energy by enhancing storage solutions and market access for smaller operators.

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