The renewable energy fund KGAL ESPF 5 has invested in a Battery Energy Storage System (BESS) in Grevesmühlen, Mecklenburg-Western Pomerania. The battery storage system is located in the immediate vicinity of a substation and is almost complete. Commissioning is already scheduled for mid-2026. The seller and future partner is the medium-sized company FENECON, which will further develop the project until completion and then be responsible for its operation.
The project has a capacity of 17.3 megawatts (MW) and a storage capacity of 48.8 megawatt hours (MWh). As an independent storage system, the system is used flexibly: it can store or release electricity at short notice to compensate for price fluctuations in day-ahead and intraday trading, and is also intended to provide balancing energy needed to stabilize the power grid in the event of short-term deviations from supply and demand.
“Battery storage systems play a central role in the successful continuation of the energy transition, as they better balance renewable generation and electricity demand in terms of time,” explains Hauke Sievers, KGAL’s responsible transaction manager. “We have made targeted investments in a BESS project that will go into operation at short notice, because this enables much more reliable planning of revenues than projects with longer implementation periods. Our battery storage system can benefit from the currently attractive spreads – i.e. the difference between the purchase prices of the electricity fed into the grid and sales prices on the electricity market.”
German engineering and short decision-making processes
Another advantage of the investment is the experienced project partner: The seller FENECON is a medium-sized provider with proven expertise in storage technologies. The project is based on German engineering and enables short decision-making paths. FENECON will be responsible for maintenance and technical management in Grevesmühlen, contributing many years of experience in the field of energy storage solutions.
With this BESS investment, KGAL is further diversifying the ESPF 5 portfolio in a targeted manner. With its now 20 assets, the Article 9 fund is broadly positioned across regions, generation technologies, development phases and power purchase agreements.
