Next Kraftwerke & ECO STOR Sign Tolling Deal for Förderstedt

June, 2026 — Next Kraftwerke and ECO STOR have signed a five-year flexibility tolling agreement for Germany’s largest 300 MW battery storage Förderstedt project. This deal marks a significant milestone in the country’s rapidly expanding battery energy storage system (BESS) sector.

The agreement provides revenue certainty for the 300 MW / over 700 MWh facility in Saxony-Anhalt, enabling construction and long-term operation without heavy reliance on subsidies.

The project will begin commercial operations in phases, with the first unit entering the day-ahead, intraday, and balancing power markets in November 2026. Full capacity is expected in 2027. This development highlights the growing maturity of large-scale battery storage in Germany amid the energy transition.

Project Overview and Technical Specifications

The Förderstedt battery storage facility represents one of the most ambitious BESS projects in Europe. Once complete, it will rank as Germany’s largest battery energy storage system by power capacity.

Key Facts

• Capacity: 300 MW power / >700 MWh energy storage
• Location: Förderstedt, Saxony-Anhalt
• Timeline: First unit operational November 2026; full operation during 2027
• Daily Cycles: Designed for two full charging and discharging cycles per day
• Supply Potential: Can power approximately 500,000 households for two hours or 100,000 households for ten hours

The system will respond dynamically to price signals and grid needs. It charges during periods of high renewable generation and low demand, then discharges when generation is low or demand peaks. It also delivers essential grid services including frequency regulation and voltage support.

What is a Flexibility Tolling Agreement?

A flexibility tolling agreement allows a storage operator to hand over market optimization to a specialized trader in exchange for fixed payments and shared upside.

Hybrid Model Explained (80% tolling + 20% merchant)

Under this structure, 80% of the battery capacity operates under a tolling arrangement that provides stable revenue. The remaining 20% stays exposed to merchant markets, allowing participation in high-value opportunities. This hybrid approach reduces financing risks while maintaining flexibility for Next Kraftwerke to optimize across multiple revenue streams.

Such models have become increasingly important for making large-scale battery storage projects bankable in volatile markets.

Role of Next Kraftwerke and Shell Energy Europe

Next Kraftwerke, a leading independent power marketer and virtual power plant operator, will handle short-term optimization and trading. The company brings extensive experience in marketing BESS since 2018 across balancing and spot markets.

Shell Energy Europe partners for long-term hedging and risk management. This combination delivers both tactical market participation and strategic financial stability. ECO STOR retains development and operational responsibilities while benefiting from expert commercialization.

Quotes from Executives

“With the tolling model, we are establishing a new standard in storage marketing and creating reliable framework conditions for our partners. We are demonstrating how state-of-the-art optimisation algorithms and intelligent market integration work together,…..In combination with our expertise in short-term optimisation and operational marketing, we complement each other perfectly with Shell Energy Europe as a partner for long-term hedging and risk management. We enable optimal market participation and make an important contribution to grid stability.”

Marc Rühs, CEO of Next Kraftwerke.

“Our focus is on combining technological innovation with clearly defined operational guidelines. By consistently taking grid requirements such as ramping speeds and the provision of control reserves into account, we ensure grid-friendly and market-oriented operation. This allows us to combine maximum flexibility with operational reliability. The combination of Next Kraftwerke and Shell gives us the security we need for projects of this magnitude. Our partnership with Next Kraftwerke and Shell gives us the necessary confidence that projects of this scale require. We also want this collaboration to be seen as a sign that the market is already far ahead of policy and regulation. We are making the energy transition irreversible, and with the storage project in Förderstedt, we are once again taking a major step forward.”

Georg Gallmetzer, Managing Director of ECO STOR

Gallmetzer noted that the market is advancing faster than regulation, making projects like Förderstedt a major step in the energy transition.

Why This Project Matters for Germany’s Energy Transition

Benefits for Grid Stability

The 300 MW battery storage Förderstedt will enhance grid stability by balancing intermittent renewable generation. It compensates for frequency fluctuations and short-term imbalances while providing reactive power to maintain voltage.

Black-Start Capability and Reactive Power

In power outages, the system can autonomously restore supply — a critical black-start capability. This feature positions the facility as vital infrastructure for a resilient energy system.

Overcoming Regulatory Uncertainty

Despite ongoing policy debates and regulatory challenges in the Germany battery storage market, this hybrid tolling model creates investment stability. It demonstrates how structured agreements can de-risk large-scale BESS projects even in uncertain environments.

Broader Context: Germany’s Booming Battery Storage Market

Germany leads Europe in battery energy storage deployment. By the end of 2025, the country had over 2.5 GW of large-scale BESS operational, with strong growth continuing into 2026. The residential segment also thrives, with millions of home batteries installed.

Projects like Förderstedt signal the evolution of battery storage from niche assets to core infrastructure. Flexible grid connections with operators like 50 Hertz further accelerate development by accommodating technical constraints such as ramp rates.

Conclusion

The tolling agreement between Next Kraftwerke and ECO STOR for the 300 MW battery storage Förderstedt project sets a benchmark for future large-scale BESS developments in Germany. It combines technological excellence with innovative financing to deliver grid stability and market value in a renewable-heavy power system.

As the Germany battery storage market matures, such projects will play an increasingly vital role in enabling the country’s ambitious energy transition goals.

Follow Renewable Storage News for more updates on large-scale BESS projects in Europe.