VPI, a power firm supported by Vitol, the world’s largest energy trader, plans to invest up to €450 million ($496 million) over the next three to five years in battery projects across Germany. This investment aligns with Germany’s ambitious goal to expand its renewable power capacity to 80% of the country’s electricity by 2030, up from around 40% currently, necessitating increased energy storage solutions to balance supply and demand.
This venture marks VPI’s first investment in Germany, following its existing power assets in Britain and Ireland. The company has entered a joint venture with German energy storage firm Quantitas Energy, aiming to develop up to 500 MW of battery storage capacity. The joint venture plans to build approximately 10 projects, primarily in northeast Germany, a region rich in wind power generation.
Jorge Pikunic, VPI’s Chief Executive, noted that the opportunity for batteries in Germany is primarily in the wholesale market, driven by significant solar power generation that creates price volatility throughout the day. The majority of the projects are expected to have a capacity of around 60 MW, although individual project sizes may vary. While the exact ownership split of the joint venture has not been disclosed, VPI is set to be the majority shareholder.