British Energy Company Plans €450 Million Investment in Germany

The British company VPI, backed by the world’s largest energy trader Vitol, is planning to invest nearly half a billion euros in battery projects across Germany. According to VPI CEO Jorge Pikunic in an interview with Reuters, the company intends to allocate up to €450 million over the next three to five years, with a focus on projects mainly in northeastern Germany.

This significant investment comes as part of an ongoing debate surrounding Germany’s competitiveness as a business location. The first investment will be through a joint venture with the energy storage company Quantitas Energy. The goal of the collaboration is to develop up to 500 megawatts of battery storage capacity, with ten projects already planned.

Focus on Energy Storage Opportunities in Germany

Pikunic highlighted the opportunities present in Germany’s wholesale electricity market. Due to the substantial amount of solar energy generated during sunny midday hours, electricity prices in Germany can fluctuate dramatically within a single day. Companies with battery storage can take advantage of these fluctuations by selling electricity when prices are high and recharging their batteries when prices are low or even negative.

VPI to Hold Majority Stake

VPI already operates energy assets in both the UK and Ireland. Pikunic noted that the size of the individual battery projects in Germany will vary, with most having a capacity of around 60 megawatts. Although he did not provide specific details regarding the ownership structure of the joint venture, Pikunic confirmed that VPI would hold the majority stake.

In the first half of the year, nearly 60% of Germany’s electricity production came from renewable energy sources, according to the German Federal Statistical Office. Wind power was the most significant contributor, accounting for about one-third of the total, while solar energy provided around 14%.

This investment marks a pivotal moment for VPI as it seeks to capitalize on Germany’s growing renewable energy market and expand its presence in Europe