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Return secures €835 million to meet demand for energy flexibility
Return aims to install at least 1 GW of battery storage capacity annually in Germany from 2027 onwards. The financing will strengthen Return’s ability to provide multiple customers with scalable access to the flexibility they need to manage their electricity portfolios.
To meet strong and growing customer demand for energy flexibility in Germany, Return is expanding the battery storage capacity underpinning its Virtual Flexibility Portfolio (VFP). To support this expansion, Return has secured an EUR 835 million portfolio financing underwritten by Deutsche Bank and Rabobank. The financing will strengthen Return’s ability to provide multiple customers with scalable access to the flexibility they need to manage their electricity portfolios and integrate growing volumes of renewable energy, the company said.
Return aims to install at least 1 GW of battery storage capacity annually in Germany from 2027 onwards, representing planned annual investments of between EUR 750 million and EUR 1.2 billion, subject to market conditions. The expansion will strengthen Return’s ability to deliver flexible energy capacity to a growing customer base in one of its most important European markets.
ENGIE recently expanded its German partnership with Return to 400 MW of contracted battery flexibility, while Centrica Energy signed a separate 100 MW agreement. Return also works with energy companies such as Vattenfall, Essent, and Eneco in other European markets, reflecting broader demand for its flexibility services.
“As demand for energy flexibility grows, we need to scale not just our battery storage capacity, but also the way we finance it,” said Daniel Witvoet, CFO at Return. “By bringing together physical infrastructure financing and our virtual flexibility model, we can expand more efficiently and respond to our customers' evolving needs.”
Three battery storage projects in Germany, representing a combined capacity of 117 MW, are covered by the new financing framework.
“We are pleased to support Return with a financing structure built to scale and structured to meet the capital expenditure needs of Return’s German BESS project pipeline,” said Dominik Thumfart, Head of Infrastructure & Energy Origination, Deutsche Bank.
“We are delighted to further strengthen our relationship with Return and support its expansion into Germany,” Marc Schmitz, Head of Project Finance Europe at Rabobank, said. “Building on our previous transactions together, we are combining our advisory, underwriting, project finance and hedging expertise to help Return realise its growth ambitions.”
