Centrica Energy and Zelestra have signed a physical tolling agreement for a 99 MW/297 MWh standalone Battery Energy Storage System (BESS) to be developed in Hilgermissen, Lower Saxony, Germany. Under the agreement, Zelestra will develop, construct, own and operate the three-hour battery storage project, while Centrica Energy will optimise and trade the contracted capacity across Germany’s wholesale electricity markets, supporting grid flexibility and renewable energy integration. Construction is scheduled to begin in 2027, with commercial operations expected in the second half of 2028.
Under the tolling agreement, the battery will be optimised through Centrica Energy’s multi-market trading and optimisation services, enabling participation across Day-Ahead, Intradayand Ancillary Services in Germany.
Lower Saxony has a strong industrial base, from the automotive industry to agriculture and food production, as well as being a strong wind power and biomass energy producer. With a growing need for flexible capacity to support the stability and resilience of the power system, the BESS project will help accelerate renewable integration, strengthen grid flexibility and support Germany’s wider decarbonization objectives.
Cassim Mangerah, Managing Director of Centrica Energy, said: “This agreement with Zelestra is an important milestone for Centrica Energy in Germany and another step forward in delivering on our strategy. The continued growth in our German flexibility portfolio demonstrates the demand for our optimisation capabilities and further strengthens our position in one of Europe’s most dynamic flexibility markets.”
Mathias Kuenicke, CEO of Zelestra in Germany, said: “Hilgermissen adds 300 MWh of flexible capacity to one of Europe’s most connected grids and largest energy storage markets. This tolling agreement with Centrica Energy is a vote of confidence in our BESS platform, and it builds directly on the pipeline we’re growing across Germany, with more than 2 GW of solar, wind and storage projects in development.”
Centrica Energy is the energy trading and optimisation arm of Centrica plc, responsible for managing commodity risk and sourcing energy on behalf of Centrica Group’s energy supply activities.
Centrica Energy is a global energy trading company which helps move energy from source to use powering businesses, homes, and societies. Across 8 offices on three continents, and with 800+ passionate and highly skilled energy experts, they trade power, gas, liquified natural gas and green certificates, connecting energy producers, suppliers and offtakers in wholesale energy markets.
Centrica Energy is one of the largest renewable asset managers in Europe, with over 18.8 GW of capacity under contract, of which more than 85% is renewable assets.
Zelestra is a vertically integrated company specializing in the development, commercialization, construction and operation of large-scale renewable energy projects. The company was recently ranked by BloombergNEF among the top 10 sellers of clean energy to corporate customers — both globally and in the US. Zelestra is backed by EQT, a leading global investment organization with more than €291 billion in assets under management.
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