A British energy firm will channel 450 million euros into German infrastructure.
Amidst the dispute about the rivalry of the locale, the British firm VPI, funded by the globe's biggest energy dealer Vitol, is all set to pour close to half a billion euros into battery schemes in Germany. Over the ensuing three to five years, approximately 450 million euros will be allocated, as disclosed by VPI's CEO Jorge Pikunic to Reuters news agency.
This joint venture with energy storage company Quantitas Energy marks the initial investment in the nation. The objective is to generate up to 500 megawatts of battery storage capacity. Ten projects are in the pipeline, predominantly in northeastern Germany.
Owing to the substantial portion of solar energy, which generates more electricity during sunny midday hours, substantial price fluctuations can spontaneously emerge within a day on the German electricity market. Firms that possess batteries can then capitalize: they can offload electricity at peak prices and recharge their batteries at low or even negative prices.
As Pikunic put it, "In Germany, a substantial portion of the potential lies on the wholesale market." This is because a substantial portion of renewable energies stems from solar, which leads to price disparities within a day."
VPI currently runs power plants in Britain and Ireland. Pikunic revealed that the individual projects in Germany would differ in size, with most boasting a capacity of 60 megawatts. The VPI CEO declined to share specifics about the company's ownership framework. He merely stated that VPI would be the primary shareholder.
In the first half of the year, more than 60% of German electricity production stemmed from renewable energy sources, according to the Federal Statistical Office. Wind power was by far the most significant energy source in domestic power production, accounting for a third share. Photovoltaics contributed around 14%.
The British firm VPI, with its significant experience in running power plants in Britain and Ireland, brings a strong background to its new investment in Germany. The British contribution to this project is expected to be substantial, as VPI is set to invest nearly half a billion euros in battery schemes within Germany.
