Kyon Energy and Obton sign framework agreement for battery storage: 600 MW of storage capacity to be added by 2026
- Largest framework agreement for battery storage between project developers and investors in continental Europe
- High three-digit million euro investment in German energy infrastructure
Munich and Aarhus (Denmark) June 12, 2023. Kyon Energy, a project and business developer specializing in battery energy storage systems, and Obton, a leading operator in the development and acquisition of solar PV systems, have entered into a framework agreement. The two partners have thus decided to build up 600 MW of storage capacity over the next three years. This is expected to result in investments in the high three-digit million euro range in the German energy infrastructure by 2026. It is the largest framework agreement for battery storage projects between project developers and investors in continental Europe and an important contribution to the success of the green energy transition.
Kyon Energy will cover the project planning of the battery storage projects, including site development and grid connection planning, building lease development and layout design. The parties will jointly handle business model development and general contracting through to turnkey commissioning of the battery storage facilities. Furthermore, Obton brings the financing of the projects and the operation of the completed battery storage facilities to the partnership. Osborne Clarke acted as legal advisor for Obton A/S in the negotiation of the framework contract.
The cooperation has already begun. The first project within the framework agreement has reached ready-to-build status. A battery storage system with a storage capacity of 15.8 MW and a capacity of 32.0 MWh is being built in Tangermünde, Saxony-Anhalt.
Kyon Energy and Obton have also already commissioned two joint projects in 2022: the battery storage facilities at the Bad Düben and Elsteraue sites, which total 27.6 MW and 32.4 MWh respectively.
Large-scale battery storage systems play a significant role in the energy transition and in providing flexibility for the power grid. They compensate for the high volatility in electricity generation from renewable energies, store surplus electricity temporarily and feed it into the grid at a later point in time according to demand and profitably. Fraunhofer ISE puts the demand for such storage in Germany in 2030 at 104 GWh - but so far only 1.2 GWh has been covered.
"The framework agreement with Obton is a milestone for the expansion of the energy infrastructure in Germany," says Florian Antwerpen, Managing Director of Kyon Energy. "The addition of 600 MW of storage capacity will significantly increase the flexibility of the grids. We are proud to make this contribution to the success of the energy transition"
"At Obton we are very proud to be at the forefront of securing the imperative flexibility of Germany energy infrastructure together with Kyon Energy and see this as a natural extension of our business in solar PV." says Torsten Lauritsen, Head of Energy Storage at Obton. “By this landmark framework agreement, we reconfirm our commitment to invest in driving the green energy transition”
About Kyon Energy
KyonEnergy is a German project and business development company focused on large-scale battery storage systems. With 121 MW of battery storage systems successfully developed and sold with partners in 2022 and a current project pipeline of over 3 GW, Kyon Energy is one of the market leaders in Germany. The company has a particular focus in the development and optimization of multi-use strategies, combined with deep expertise in project development and management as well as regulation of large-scale battery storage systems. Through its battery storage systems, Kyon Energy is a driver of the energy transition and strives for a world powered by renewable, sustainable and independent energy.
Obton is a leading operator in the development and acquisition of solar PV systems - mainly in Europe, but also in Asia, Australia and Canada. The company has been in the solar energy business since 2009 and actively operates more than 1,200 PV plants in twelve countries. Obton offers opportunities to invest in large solar and battery storage funds and currently manages approximately EUR 3.5 billion on behalf of more than 4,200 Danish investors.