KGAL ESPF 5 invests in a German battery storage project developed by FENECON

The renewable energy fund KGAL ESPF 5 has invested in a Battery Energy Storage System (BESS) in Grevesmühlen, Mecklenburg-Western Pomerania. The battery storage facility is located in the immediate vicinity of a substation and is nearing completion. Commissioning is scheduled for mid-2026. The seller and future partner is the medium-sized company FENECON, which will continue to develop the project until completion and subsequently take over its operation.

The project has a capacity of 17.3 megawatts and a storage capacity of 48.8 megawatt-hours. As a standalone storage facility, the system can be deployed flexibly: It can store or release electricity at short notice to balance price fluctuations in day-ahead and intraday trading, and is also intended to provide balancing energy, which is required to stabilise the electricity grid in the event of short-term deviations in supply and demand.

“Battery storage plays a central role in the successful continuation of the energy transition, as it better aligns renewable generation with electricity demand over time,” explains Hauke Sievers, the transaction manager responsible at KGAL. “We have specifically invested in a BESS project that will come online in the short term, as this allows for significantly more reliable revenue planning than projects with longer implementation periods. Our battery storage facility can benefit from the currently attractive spreads – the difference between purchase and sale prices on the electricity market.”

German engineering and fast decision-making
Another advantage of the investment is the experienced project partner: the seller, FENECON, is a medium-sized company with proven expertise in storage technologies. The project is based on German engineering and enables short decision paths. FENECON will take over maintenance and technical operations in Grevesmühlen, bringing to the table many years of experience in the field of energy storage solutions.

With this BESS investment, KGAL is further diversifying the ESPF 5 portfolio. The article 9 fund now comprises 20 assets and is broadly diversified across regions, generation technologies, development phases and offtake agreements.

Please cite FENECON as the source when using the images.