Osborne Clarke advises Zelestra Germany on conclusion of a tolling agreement with Centrica Energy

Osborne Clarke has advised Zelestra Germany GmbH on the conclusion of a partial tolling agreement with Centrica Energy. The agreement concerns a large-scale battery storage system with a power capacity of 99 MW and an energy capacity of around 297MWh.

Zelestra Germany, a company of the EQT group, is among the dynamically growing market participants in the German energy sector. With locations in Hamburg, Berlin and Rostock and a team of over 70 experts, the company develops tailor-made energy solutions from a broad technology portfolio – solar, battery storage, wind and green hydrogen. Zelestra operates internationally in Germany, Spain, Italy and the USA.

The contract structure combines two remuneration mechanisms: part of the usable capacity is remunerated through a fixed availability payment, thereby ensuring predictable base revenues. The remaining merchant share is settled on the basis of the actual market revenues achieved and divided between the contracting parties – with direct participation in opportunities in the day-ahead, intraday and balancing energy markets. Zelestra remains responsible under the agreement for technical operation, while Centrica Energy assumes responsibility for commercial operation and multi-market optimisation of the battery asset.

The agreement was concluded in a market environment in which large-scale energy storage projects face ongoing regulatory and economic challenges, making viable and sustainable contract structures increasingly important. The signing is regarded as a signal for the continued bankability of BESS projects in Germany.

“The German BESS market is developing rapidly, but the framework conditions remain complex. Our objective was to develop a contract structure for Zelestra that both creates investment security and enables genuine market participation,” says Anna von Bremen, Head of Energy Innovation at Osborne Clarke.

The Osborne Clarke team that advised Zelestra consisted of Anna von Bremen and Rahel Brockmann (both Energy) and Gabriela von Wietersheim (Finance).