RWE to Optimize 50 MW of Battery Storage from terralayr in Landmark Flexibility Deal

Representational image. Credit: Canva

Starting in 2026, RWE will take over the market optimization of 50 megawatts (MW) or 100 megawatt hours (MWh) of battery storage capacity from terralayr, a provider of energy flexibility solutions. The agreement will run for five years and marks a significant step in the evolution of distributed energy storage in Germany.

The battery systems are located within the 50Hertz transmission system operator’s control area and will be aggregated into a virtual battery using terralayr’s proprietary flexibility platform. RWE will integrate the virtual storage into its energy trading operations, helping balance supply and demand on the grid more efficiently.

Bart Beljaars, Head of Commercial Asset Optimisation for Continental Europe at RWE, said: “Batteries are becoming increasingly important for a stable energy supply, and tetralayer’s virtual battery is a perfect complement to our rapidly growing portfolio of batteries and generation assets. By working with terralayr, we can utilise the flexibility of both RWE and customer batteries more effectively.”

Mikko Preuß, Chief Commercial Officer at terralayr, added: “A stable revenue is a crucial building block for financing battery storage projects. Through our collaboration with RWE, we can establish a new market standard with fixed remuneration structures, providing storage investors with access to stable revenues. We offer customers storage capacity, providing all the advantages of a physical battery storage system without them having to manage the physical systems themselves.”

Under the terms of the deal, terralayr will receive a fixed annual payment in a tolling agreement—an arrangement in which terralayr retains operational control of the battery systems while allowing RWE to market the available storage capacity. This agreement is notable for being based on a multi-asset tolling structure, rather than a traditional single-site model. Multiple, smaller battery systems are combined and managed as one, unlocking long-term revenue opportunities for smaller operators who were previously excluded from such contracts.

The multi-asset model offers several advantages. It spreads operational risk across various systems, helps improve overall performance, and can extend the lifespan of battery assets. Additionally, a unified technical connection ensures that new systems can be added easily while maintaining consistent performance standards across diverse technologies.

This collaboration represents an innovative approach to integrating distributed storage assets into the energy market, enabling more flexible, resilient, and sustainable energy systems.

 

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