Copenhagen Energy and Akaysha Energy are set to implement one of Germany’s largest battery storage projects in Bühl near Baden-Baden, with plans to build a four-hour storage system with 500 MW capacity and 2 GWh of electricity storage, aligning with the trend of large-scale multi-hour battery designs. The companies are presenting the project to the local municipal council on the same day.

The Bühl location is appealing due to its proximity to extra-high voltage infrastructure and a substation, which minimizes land consumption, according to a statement from the Bühl municipality. An industrial estate is also nearby. The municipality anticipates the project will boost the regional economy, bring additional trade tax revenue, and contribute to a secure, sustainable energy supply.

The partnership between Denmark’s Copenhagen Energy (a renewable energy project developer and electricity trader) and Australia’s Akaysha Energy (a battery storage developer and operator) forms a joint venture focused on building large-scale storage systems in Germany. This collaboration is supported by a €184 million equivalent corporate credit facility from a consortium including Deutsche Bank, BNP Paribas, ING, SMBC, and Westpac.

Paul Curnow, Managing Director and Chief Commercial Officer of Akaysha Energy, noted that each German project will be funded through project-specific non-recourse financing and potential regional co-investments. He added that the contractual structures Akaysha intends to use in Germany are based on its Australian experience, where virtual tolling models, revenue-sharing models, and capacity-swap style agreements have driven storage expansion. Capacity-swap agreements are highly structured, tailored to offtakers’ needs and risk tolerance while ensuring bankability.