VPI, backed by Vitol, invests up to 450 million euros in German batteries
VPI chief executive said that the company, which is backed by Vitol, the largest energy trader in the world, would invest up to 450 millions euros in Germany's battery projects over the next 3 to 5 years.
Germany is planning to expand its renewable energy capacity rapidly to 80% by 2030, from 40% currently. This will require an increase in storage of energy to help balance the supply and demand within the system.
VPI, which already has power assets in Britain and Ireland, said that the joint venture between Quantitas Energy and VPI would be their first investment in the country.
The German power market is prone to extreme price fluctuations due to the high level of solar power. Batteries allow companies to profit from charging at low prices and selling electricity during peak times.
In an interview, Jorge Pikunic said that "in Germany a large part of the opportunity for batteries is on the wholesale markets... This is because solar is a big part of renewable energy which creates price differences within the day."
The joint venture will build 10 projects in the northeast of Germany, an area rich in wind power.
Pikunic stated that the scale of each project would vary, but the majority would have a capacity of 60 MW.
He did not reveal the ownership split but stated that VPI would be a majority shareholder. ($1 = 0,9079 euros) Reporting by Susanna Twidale, Editing by Emelia S. Sithole-Matarise
(source: Reuters)
