Energy storage provider Return announced that it has secured €835 million (USD$936 million) in portfolio financing underwritten by Deutsche Bank and Rabobank, aimed at expanding its battery storage capacity in Germany.

Founded in 2021, Amsterdam-based Return provides solutions that ensure that renewable energy is efficiently stored and used where and when it is needed. The company builds, owns and operates large-scale energy storage solutions, including its high-tech battery energy storage system (BESS), which connects storage sites across countries, and provides real-time insight into where energy is available and needed to ease congestion and strengthen the grid.

The company said that its expansion plans come as Germany increasingly relies on wind and solar power, creating a need for energy companies to show greater flexibility in the managing fluctuations in electricity generation.

The new financing framework covers three battery storage projects under construction in Germany, with a combined capacity of 117 MW. Assuming four-hour batteries operating at two full cycles per day, the facilities could discharge enough electricity annually to match the consumption of approximately 100,000 German households. Additional projects are expected to be added to the framework through 2027 as they progress towards financial close.

Dominik Thumfart, Head of Infrastructure & Energy Origination, Deutsche Bank, said:

“Battery storage plays a crucial role in Germany’s energy transition, by assisting with optimizing the revenue potential of intermittent power generation plants and ensuring grid stability. 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.”

The company said that it aims to install at least 1 GW of battery storage capacity annually in Germany beginning in 2027, representing planned annual investments of between €750 million and €1.2 billion, depending on market conditions.

Daniel Witvoet, CFO at Return, said:

“As demand for energy flexibility grows, we need to scale not just our battery storage capacity, but also the way we finance it. By bringing together physical infrastructure financing and our virtual flexibility model, we can expand more efficiently and respond to our customers’ evolving needs.”