Key Takeaways
- Zelestra and Centrica Energy signed a physical tolling agreement covering 99 MW/297 MWh of battery storage in Germany.
- The deal covers Zelestra’s three-hour Hilgermissen battery project in Lower Saxony.
- Centrica Energy will trade and optimise the system across Germany’s power and ancillary services markets.
- Zelestra will develop, construct, own and operate the project.
- Engineering and procurement are due to finish this year, with construction from 2027 and full operations in the second half of 2028.
Zelestra Signs a Tolling Deal for a German Battery Project
Zelestra and Centrica Energy have signed a physical tolling agreement for 99 MW/297 MWh of battery storage capacity at Zelestra’s Hilgermissen project in Lower Saxony, Germany. Under the arrangement, Centrica Energy will manage the contracted capacity through its multi-market trading and optimisation platform while Zelestra builds and runs the asset. A tolling deal like this gives the developer a contracted revenue stream, which can make a large battery project easier to finance.
Inside the Hilgermissen Storage Project
The Hilgermissen site is a three-hour battery energy storage system. Zelestra will develop, construct, own and operate the project, drawing on its pipeline of storage developments across Europe. Engineering and procurement work is expected to conclude this year, with construction beginning in 2027 and full operations following in the second half of 2028.
“Hilgermissen adds 300 MWh of flexible capacity to one of Europe’s most connected grids and largest energy storage markets,” said Mathias Künicke, chief executive of Zelestra in Germany.
Centrica Energy’s Trading Role
Centrica Energy will trade and optimise the 297 MWh system across Germany’s power and ancillary services markets. The tolling structure lets the developer secure a route to market for the battery’s output while the trading partner handles dispatch and captures value from price swings. The companies did not disclose the duration or financial terms of the agreement.
“This agreement with Zelestra is an important milestone for Centrica Energy in Germany and another step forward in delivering on our strategy,” said Cassim Mangerah, managing director of Centrica Energy.
Zelestra’s European Storage Expansion
The German deal adds to Zelestra’s growing set of battery storage agreements across Europe, following similar tolling arrangements in other markets. Pairing a developer-owned asset with a trading partner is a model the company has used to move projects toward construction as demand for grid flexibility rises alongside wind and solar buildout.
