Under the agreement, Terralayr develops, constructs, and manages a portfolio of over 100 megawatts of storage capacity across eight facilities. Vattenfall, based in Hamburg, secures 55 megawatts of this capacity through a seven-year purchase agreement, optimizing it for energy trading. The tolling model allows Vattenfall to access the capacity at a fixed cost without investing in physical infrastructure. Operations are set to begin by the end of 2025.
Unlike traditional tolling arrangements tied to a single storage unit, this contract aggregates capacity from multiple decentralized large-scale batteries. This approach enables smaller storage systems to participate in high-volume tolling agreements, enhancing financial stability for investors and operators. The partnership supports the expansion of energy storage in Germany by ensuring consistent revenue streams.
Honey Duan, director of commodity origination at Vattenfall, stated: “Due to its decentralized nature, Terralayr’s battery storage network can be ideally integrated into our automated trading processes. In this way, we reduce the cost of imbalances in our portfolio and can provide flexibility whenever it brings the greatest benefit to the electricity market.”
The collaboration facilitates the integration of renewable energy sources, such as wind and solar, by mitigating fluctuations in power generation. This reduces the need for costly grid interventions, enhancing overall energy efficiency. Terralayr handles the development, financing, construction, and operation of the storage systems, utilizing its cloud-based software platform to bundle the assets effectively.
By leveraging Terralayr’s distributed storage network, Vattenfall can optimize energy trading without direct hardware investments, demonstrating a scalable model for storage flexibility. The partnership supports Germany’s energy transition by promoting the growth of battery storage infrastructure, contributing to a more stable and sustainable electricity market.
