Centrica Energy Signs Tolling Agreement for 99 MW Battery Storage Project in Germany

Centrica Energy and Zelestra have signed a physical tolling agreement covering 99 MW / 297 MWh of battery energy storage capacity at Zelestra’s Hilgermissen Battery Energy Storage System (BESS) project in Lower Saxony, Germany.

Under the agreement, Zelestra will develop, construct, and own the battery storage facility, with engineering and procurement activities scheduled for completion this year. Construction is expected to begin in 2027, while commercial operations are targeted for 2028.

Centrica Energy will optimize the battery through its multi-market trading and optimization platform, enabling participation in Germany’s Day-Ahead, Intraday, and Ancillary Services electricity markets. The collaboration is intended to enhance the commercial value and operational flexibility of the storage asset.

The Hilgermissen BESS project is expected to strengthen grid flexibility and improve power system reliability in Lower Saxony, a region with a strong industrial base and significant renewable energy generation from wind and biomass. The project will also support the integration of renewable energy and contribute to Germany’s broader decarbonization goals.

Commenting on the agreement, Cassim Mangerah, Managing Director of Centrica Energy, said the partnership marks an important milestone for the company’s operations in Germany and reflects the continued expansion of its flexibility portfolio in one of Europe’s fastest-growing energy storage markets.

Mathias Kuenicke, CEO of Zelestra Germany, said the Hilgermissen project will add 300 MWh of flexible storage capacity to one of Europe’s largest energy storage markets. He added that the agreement reinforces confidence in the company’s battery storage platform and supports its growing development pipeline of more than 2 GW of solar, wind, and energy storage projects across Germany.