Return, the Amsterdam based energy storage provider, has secured 835 million euros in portfolio financing underwritten by Deutsche Bank and Rabobank for its Virtual Flexibility Portfolio in Germany. Mercom converts the facility at about 930 million dollars. The financing combines funding for physical battery assets with the virtual portfolio, which aggregates capacity from multiple batteries into a single product customers can draw on through one interface.
The framework initially covers three battery storage projects in Germany with a combined 117 megawatts, all under construction. Further projects are to be added in the near future and during 2027 as they reach financial close. Rabobank also acted as financial adviser, with Hogan Lovells Cadwalader advising the borrowers and White & Case the lenders.
Return aims to install at least 1 gigawatt of battery storage a year in Germany from 2027, with annual investment expected between 750 million euros and 1.2 billion euros, subject to market conditions. In Germany it has expanded its contracted battery flexibility partnership with Engie to 400 megawatts and signed a 100 megawatt agreement with Centrica Energy.
The structure matters more than the first tranche of assets. A facility of 835 million euros against 117 megawatts under construction only makes sense as a programme: the lenders are funding a pipeline and a flexibility platform, not three named projects, which is a step change from the project by project debt German storage has mostly used so far.