ENGIE, a global reference in low-carbon
energy and services, and energy tech company Flower Infrastructure Technologies
AB (“Flower”) have signed a seven-year virtual Flexibility Purchase Agreement
(“FPA”, also referred to as a virtual toll), covering 126 MW of BESS-backed
flexible capacity in Germany.
The agreement, starting January 1, 2029, enables the financing, deployment and
commercialization of several battery projects, including the largest BESS
project in Hamburg (100 MW / 400 MWh), internally developed by Flower, and
Flower’s recently acquired BESS project in Döllnitz, Saxony-Anhalt (63 MW / 257
MWh). ENGIE will secure long-term access to the flexibility of a portfolio of
Flower’s battery assets, which will be integrated into its market activities.
Battery storage (“BESS”) plays a key role in balancing supply and demand by
storing electricity when supply exceeds demand and releasing it when needed.
Through its use across wholesale and ancillary services markets, it contributes
to grid stability and supports the integration of renewable energy in Germany.
By combining Flower’s asset portfolio and optimisation technology with ENGIE’s
advanced risk management and structuring expertise, market and operational risks
can be effectively managed, making battery energy storage systems bankable and
scalable.
“This agreement with Flower illustrates how long-term partnerships can support
the scaling of battery storage and reinforce flexibility in the energy system,”
said Katrin Fuhrmann, Managing Director of ENGIE Supply and Energy Management
activities in Germany. “By combining our expertise, we strengthen our ability to
deliver reliable and competitive flexibility solutions to our customers,
supporting them in managing price volatility and integrating renewable energy.”
“This is a significant milestone, not only for Flower and ENGIE, but for
Europe’s path to affordable, reliable and clean energy,” says John Diklev,
Founder and CEO of Flower. “To accelerate the energy transition, Europe needs
scalable, long-term flexibility agreements that support investment in battery
storage. These structures are essential for unlocking the capital required to
build tomorrow’s flexibility infrastructure. We are proud to be driving this
shift together with ENGIE.”
The agreement also represents a new commercial model for Flower, combining
long-term partnerships with continued growth of its asset portfolio in Europe.
Both companies intend to explore further collaboration opportunities as
flexibility markets continue to evolve across Europe.
