BW ESS and Zelos advance 1.5GW BESS project pipeline in Germany

BW ESS and Zelos Energy Developments are working on a 1.5GW portfolio of utility-scale battery energy storage system (BESS) projects in the northeastern federal German states of Mecklenburg-Vorpommern and Sachsen-Anhalt.

The projects are expected to achieve ready-to-build status in 2025-2027.

The projects are strategically located in the 50 Hertz TSO region. In the partnership, Zelos will take the lead on securing land, grid, and permits. BW ESS will lead on engineering design and construction, global procurement, securing revenue, and project financing. The projects are being developed in close collaboration with local communities and following environmental, social and governance criteria. The partnership allows for further expansion as new opportunities arise.

Said Timo Juritsch, managing director of Zelos Energy Developments, in a release: “Zelos is excited to partner with BW ESS in a collaboration that brings valuable experience and expertise to support our mission of realizing a substantial BESS pipeline in Germany. This partnership marks an important step as we jointly work to accelerate the energy transition and deliver impactful progress on the path toward a more sustainable energy future.”

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“BW ESS is delighted to partner with Zelos. We continue to be impressed with their agility and speed. The expanded footprint in Germany reinforces BW ESS’ commitment to unlocking the value of energy storage”, said Roberto Jiménez, executive director, BW ESS.

According to Aurora Energy Research, Germany is Europe’s largest and most liquid power market. It ranks among the top three most attractive European markets for BESS investment, alongside Italy and Great Britain.

The federal government is updating its policies to support BESS including reviewing grid-related charges and permitting processes. It is also looking into the creation of a capacity market. A study by Frontier Economics states that the capacity of utility-scale BESS can generate €12 billion ($13.6 billion) in added economic value.

The German Solar Industry Association (BSW) projects that large-scale battery storage capacity could increase fivefold over the next two years, indicating a robust growth trajectory.

For the transaction with Zelos, Bird & Bird acted as legal advisor and Arcadis acted as technical advisor for BW ESS. Legal counsel Mr. Jochen Terpitz acted as advisor to Zelos.