Econergy Renewable Energy Ltd. has announced that on June 10, 2025, a German-incorporated subsidiary (the “Holding Company”), fully owned by Econergy International Limited (a UK-incorporated company under the control of the Company), signed a binding agreement to acquire 100% of the issued and paid-up share capital of a German company that holds construction permits and grid connection agreements for two battery storage projects in Brandenburg, Germany, with a total capacity of 100 MW (with an option for expansion, subject to regulatory approval) (the “Acquisition Agreement” and the “Projects,” respectively).
Key Terms of the Acquisition:
- Upon closing, full ownership (100%) of the shares of the project company will be transferred to the holding company.
- The acquisition price will be paid in installments, contingent on milestone achievements (CP). The seller is obligated to actively pursue fulfillment of these conditions.
- The company estimates that the key conditions precedent will be fulfilled in the coming months.
Project Status:
- The project company holds valid construction permits, grid connection rights, and required land rights.
- As of this report, the projects are in the RTB phase.
- Construction is expected to begin by the end of 2025, with grid connection targeted for the end of Q1 2027.
Key Financials (5-Year Annual Average Projections):
- Total Investment: ~€73 million
- Expected Leverage: 50–60%
- Annual Revenues: ~€13.7 million
- Annual EBITDA: ~€11.9 million
Strategic Context:
Germany represents one of the largest and most advanced energy markets in Europe. As of the end of 2024, the country had ~250 GW of installed capacity, with ~60% from renewable sources. According to market forecasts, by 2030 the installed capacity is expected to reach ~417 GW, of which 77% will be renewables. The German government has committed to reaching net-zero carbon emissions by 2045 and phasing out coal by 2038.
The battery storage sector in Germany is still in early development, with currently ~2 GW of installed capacity. Market forecasts project this figure will reach 10 GW by 2030 and 25 GW by 2050.
After monitoring the market and its developments over an extended period, Econergy has identified the conditions as ripe for market entry, based on strong projected demand for storage and favorable expected returns. The company intends to further deepen its presence in Germany and is actively evaluating additional storage opportunities.
Econergy expects that the German operations will evolve into a dedicated operating segment and business line in its financial reporting, with appropriate disclosure to be included in the Q2 2025 financials.
Forward-Looking Statements Disclaimer
Estimates related to project timelines, investment costs, revenues, tariffs, financing, and returns, as well as assumptions about the German market, constitute forward-looking statements. These are based on current assessments and plans and are subject to risks and uncertainties outside the Company’s control, including regulatory changes, construction delays, financing terms, and macroeconomic conditions
Electrify your feed! Click here to join our Whatsapp group and to get the latest updates, expert insights, and innovations driving India’s energy storage revolution.
