Vattenfall signs ‘industry first’ virtual battery tolling agreement
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Energy utility Vattenfall and energy flexibility provider terralayr have signed a 7-year, 55MW multi-asset capacity tolling deal — what they call an industry-first virtual battery tolling structure.
The two companies signed a memorandum of understanding (MoU) for a decentralised fleet of battery storage systems under a deal they say marks the first known multi-asset capacity toll.
The batteries are developed, built, and aggregated by terralayr through its proprietary flexibility platform. A portion of the total capacity is then operated by Vattenfall in Hamburg, Germany, under a long-term offtake agreement and optimised in the energy markets.
The seven-year agreement covers 55MW of capacity drawn from a larger portfolio of terralayr-operated storage sites, spanning eight locations across Germany.
According to the companies in a release, the agreement demonstrates how battery flexibility can be scaled efficiently without hardware investment.
Operations across the distributed portfolio are scheduled to begin by the end of 2025.
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A virtual portfolio
Unlike conventional tolling agreements tied to a single physical asset, this deal is structured around aggregated capacity from multiple decentralised grid-scale batteries.
For the first time, reads the release, this structure opens large-scale tolling agreements to smaller battery systems — a configuration that was rarely feasible within conventional models.
The distributed layout of this battery network also helps offset regional inefficiencies in the power market and creates opportunities for energy optimisation.
According to Vattenfall, a range of strategic advantages are opened with the partnership, including more efficient integration of renewable energy by balancing fluctuations in wind and solar production, while reducing the need for costly grid interventions. Additionally, targeted optimisation of battery assets across energy and balancing markets will support price stability and grid reliability.
terralayr is responsible for the development, construction, financing, and operation of the physical storage assets.
These assets are then aggregated via terralayr’s proprietary cloud-based software platform.
Vattenfall connects to the batteries via a centralised API; such streamlined access to capacity, they say, will enable efficient management of diverse systems, ensure consistent performance standards, and reduce integration effort for future storage additions.
Unlike owning or directly leasing a large-scale battery storage system, this model does not require Vattenfall to make significant capital investments or carry lease-related liabilities on its balance sheet.
Instead, the service is treated as an operating expense (OpEx).
Vattenfall, based in Sweden, is one of Europe’s largest producers and retailers of electricity and heat. The company’s main markets are Sweden, Germany, the Netherlands, Denmark and the UK.
