News Synopsis
PROJECT SNAPSHOT
Project Alfeld BESS
Capacity 137MW / 282MWh
Location Lower Saxony, Germany
Asset Owner Scale Fund
Asset Manager BayWa r.e.
Contract Eight-year service agreement
Technology Standalone Battery Energy Storage System
Application Ancillary services / primary control reserve
Status Under construction
COD Beginning of Q3 2026
BayWa r.e. has expanded its energy storage asset operations business after signing an eight-year service agreement with Danish investment company Scale Fund for the Alfeld BESS in Lower Saxony, Germany.
The Alfeld standalone BESS project, now under construction in Germany, will include 137MW of installed output and 282MWh of storage capacity. The facility is expected to begin commercial operations in early Q3 this year and become the country’s largest standalone battery storage system.
Once operational, the battery system will mainly provide ancillary grid services, particularly primary control reserve. These services are used to stabilize grid frequency and support security of electricity supply as renewable energy capacity continues to expand across Germany.
Under the agreement, BayWa r.e. will manage the operation of the battery system for eight years. No financial details were disclosed for the contract or project investment. The Alfeld system is owned by the Scale Fund, a Danish investment platform focused on energy infrastructure. The deal comes as Germany’s utility-scale battery storage sector continues to see growing investor interest, driven by rising demand for grid flexibility.
Data Services GmbH, part of BayWa r.e., said the contract was awarded after a competitive tender process. The company will use digital asset management systems and battery monitoring tools to operate the project. BayWa r.e. is also working with TWAICE to support battery performance analysis and operational optimization. According to the companies, the project will become part of Germany’s critical energy infrastructure once fully operational.
Ownership of the Alfeld project remains with the Scale Fund, while BayWa r.e. will act as the long-term asset manager and operator. The project adds to the number of standalone battery storage systems in Europe’s energy market. As more wind and solar power enters the grid, utilities and grid operators are increasing investment in storage systems that can provide balancing services and improve grid flexibility.
With the Alfeld project, BayWa r.e. is expanding its battery storage operations business beyond its own renewable portfolio. The project also highlights the increasing scale of battery deployments in Germany, where standalone BESS projects are becoming an important part of the country’s energy transition strategy.