Return, an energy flexibility company, has secured €835 million in portfolio financing to expand its battery energy storage capacity in Germany. The financing has been underwritten by Deutsche Bank and Rabobank to support the company’s growing Virtual Flexibility Portfolio (VFP) and meet increasing demand from energy companies for flexible electricity solutions.
The financing will enable Return to expand its battery storage infrastructure and provide customers with greater access to energy flexibility. The company plans to install at least 1 GW of battery storage capacity annually in Germany from 2027 onwards. These expansion plans are expected to require annual investments ranging between €750 million and €1.2 billion, depending on market conditions.
Germany’s growing dependence on renewable energy sources, particularly wind and solar power, is increasing the need for flexible electricity systems. Since renewable generation can fluctuate depending on weather conditions, energy companies require storage solutions to balance electricity supply and demand. Return aims to address this requirement through its Virtual Flexibility Portfolio, which combines the capacity of multiple battery storage facilities into a single virtual portfolio. This allows customers to access flexible capacity through one platform and manage their electricity portfolios more efficiently.
Return has already established commercial partnerships with several energy companies. ENGIE recently expanded its partnership with Return in Germany to 400 MW of contracted battery flexibility. Centrica Energy has also signed a separate agreement covering 100 MW. The company additionally works with Vattenfall, Essent and Eneco in other European markets.
The new financing framework covers three battery storage projects in Germany with a combined capacity of 117 MW. Based on four-hour battery systems operating at two full cycles daily, these facilities could discharge enough electricity annually to match the yearly consumption of approximately 100,000 German households. Return can also include additional eligible projects under the same financing arrangement as they move towards financial close.
Unlike traditional financing models, where individual battery storage projects require separate financing arrangements, Return’s portfolio financing structure brings multiple facilities under a single framework. This approach is expected to simplify financing processes, improve capital deployment and support faster expansion of battery storage infrastructure.
The company previously adopted a similar financing approach in the Netherlands, where its Sirius project achieved financial close earlier this year under a framework covering multiple battery storage developments. The German financing builds on this experience by combining financing for physical battery assets with Return’s virtual flexibility business model.
Daniel Witvoet, CFO of Return, said the financing would help the company expand its battery storage capacity and respond to increasing customer requirements. He highlighted the importance of combining infrastructure financing with the company’s virtual flexibility model to support more efficient growth.
Deutsche Bank and Rabobank supported the financing arrangement. Rabobank acted as financial advisor, while Hogan Lovells Cadwalader advised the borrowers and White & Case served as lenders’ legal advisor. Other advisors included Baker McKenzie, Baringa, DNV, EY, EY Parthenon and Marsh.
The expansion is expected to strengthen Return’s position in Germany’s energy storage market. As the country continues integrating renewable electricity into its power system, additional battery storage capacity will play an important role in balancing generation, supporting grid stability and improving the utilization of renewable energy.
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