VPI, a power company supported by Vitol, the world’s largest energy trader, has committed to investing as much as €450 million ($496 million) in German battery storage projects over the next three to five years. This investment will help support Germany’s ambitious plan to expand renewable energy to 80% of its electricity supply by 2030, doubling the current share of around 40%. The expansion will require significant energy storage capacity to balance supply and demand fluctuations.
VPI, which already operates power assets in the UK and Ireland, has partnered with Quantitas Energy, a German energy storage firm, marking its first investment in Germany. The partnership aims to develop up to 500 MW of battery storage capacity, primarily in northeast Germany, an area rich in wind energy generation.
Due to the high levels of solar energy in Germany, which generates the most electricity during midday, the power market often experiences significant price volatility. Battery storage systems can capitalize on these fluctuations by charging when prices are low and selling electricity when prices spike. "In Germany, a lot of the opportunity for batteries is on the wholesale market, driven by solar power’s intra-day price differentials," VPI CEO Jorge Pikunic explained.
The joint venture plans to build 10 battery storage projects, with most having a 60 MW capacity. While Pikunic did not disclose the exact ownership split of the joint venture, he confirmed that VPI would hold the majority stake in the partnership.
