Return secures €835 million from Deutsche Bank and Rabobank for batteries in Germany

Amsterdam-based storage operator Return announced on 4 November an €835 million portfolio financing for its batteries in Germany, underwritten by Deutsche Bank and Rabobank. According to the company, the structure combines the financing of physical batteries with its virtual flexibility portfolio.

What is being financed. The facility initially covers three German projects under construction with a combined capacity of 117 MW. According to pv magazine, they total 468 MWh and are designed as four-hour systems. Return says further projects will join the facility in the near future and during 2027. The company estimates that, at two cycles a day, the three projects could deliver each year as much as about 100,000 German households consume.

The target. From 2027, Return aims to install at least 1 GW of storage a year in Germany, which, according to the company, would mean annual investment of between €750 million and €1.2 billion, depending on market conditions.

The customers. The capacity is sold through the virtual flexibility portfolio, which pools several batteries into a single interface. In September, Engie expanded its contract with Return in Germany to 400 MW, and Centrica Energy signed a "virtual tolling" agreement for 100 MW and 400 MWh. Return also works with Vattenfall, Essent and Eneco in other European markets.

What the lenders say. "Battery storage plays a crucial role in Germany's energy transition," said Dominik Thumfart of Deutsche Bank. Marc Schmitz, head of project finance Europe at Rabobank, said that "Germany needs more flexible capacity as wind and solar generation grows". Return's chief financial officer, Daniel Witvoet, said the company must scale not only its storage capacity but also the way it finances it.

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