ENGIE and Flower signed a seven-year virtual Flexibility Purchase Agreement for 126 MW of BESS-backed capacity in Germany. The deal starts on January 1, 2029, covering battery assets including Hamburg and Döllnitz projects, supporting financing, commercialization, grid flexibility and renewable integration.
PROJECT SNAPSHOT
Project Name – Flower BESS portfolio in Germany.
Developer– Flower Infrastructure Technologies AB.
Capacity – 126 MW of BESS-backed flexible capacity.
Location – Germany, including Hamburg and Döllnitz, Saxony-Anhalt.
Technology Used – BESS and optimisation technology.
Project Status – Agreement signed.
Timeline – Agreement starts on January 1, 2029, for seven years.
Power Offtaker – ENGIE will secure long-term flexibility access.
Purpose– Grid flexibility, wholesale market participation, ancillary services and renewable integration.
Expected Output– Grid stability and price volatility management.
Agreement Details – Seven-year virtual Flexibility Purchase Agreement, also referred to as a virtual toll.
ENGIE, a global reference in low-carbon energy and services and energy tech company Flower Infrastructure Technologies AB (Flower) have signed a seven-year virtual Flexibility Purchase Agreement covering 126 MW of Battery Energy Storage System capacity in Germany. The commercial agreement will officially start on January 1, 2029. The contract supports the financing, deployment, and commercial use of multiple battery storage projects developed or owned by Flower Infrastructure Technologies AB.
The contract gives ENGIE long-term access to operational flexibility from the battery asset portfolio of Flower Infrastructure Technologies AB. ENGIE plans to integrate the portfolio into energy market activities, including wholesale electricity markets and ancillary services markets.
The covered battery portfolio includes a project in Hamburg rated at 100 MW / 400 MWh, which represents the largest BESS project in Hamburg. Flower Infrastructure Technologies AB internally developed the Hamburg project. The portfolio also includes a recently acquired Battery Energy Storage System project in Döllnitz, Saxony-Anhalt, rated at 63 MW / 257 MWh. BESS stores electricity when generation supply exceeds grid demand and releases electricity back to the grid when electricity demand rises.
The virtual Flexibility Purchase Agreement operates as a virtual toll where ENGIE secures access to operational flexibility. The virtual contract is structured to support the financing and commercialization of the battery projects. Flower Infrastructure Technologies AB will contribute the asset portfolio and optimization technology, while ENGIE will contribute risk management and structuring expertise.
Both companies said the commercial structure is intended to manage market and operational risks to support bankable and scalable battery systems. Katrin Fuhrmann, Managing Director of ENGIE Supply and Energy Management activities in Germany, said the agreement shows how long-term partnerships can support battery storage and flexibility in the energy system. Fuhrmann said the combined expertise can help deliver flexibility solutions for customers managing price volatility and renewable energy integration.
John Diklev, Founder and CEO of Flower Infrastructure Technologies AB, said Europe needs scalable, long-term flexibility agreements that support battery storage investment. Diklev said the contractual structures can help unlock capital required for flexibility infrastructure. The agreement creates a new commercial model for Flower Infrastructure Technologies AB by combining long-term partnerships with continued expansion of the European asset portfolio.
ENGIE and Flower Infrastructure Technologies AB intend to explore further collaboration opportunities as flexibility markets evolve across Europe. The agreement is intended to support the use of BESS-backed flexible capacity in Germany through long-term contracting, market integration, and battery asset optimization.
The agreement is intended to support grid stability and renewable energy integration through long-term access to BESS-backed flexibility. The companies intend to manage the storage system assets to match German power grid fluctuations.