BayWa r.e. has strengthened its Asset Operations business with the signing of an eight-year service contract with a Danish investment fund - the Scale Fund, for the Alfeld battery storage system located in Lower Saxony, Germany.

The Alfeld project is set to become Germany’s largest battery energy storage system (BESS), featuring 137 MW of output and 282 MWh of capacity. The system is currently under construction with commercial operation scheduled to start at the beginning of 3Q26. It will be used primarily to provide ancillary services, in particular primary control reserve, and make a significant contribution to grid stability and security of supply in the future.

This contract represents one of the first external standalone battery assets for BayWa r.e., which had previously operated only its own storage systems within hybrid (solar & wind co location) projects.

Dr Daniel Gäfke, COO of BayWa r.e., said: “This deal marks a significant milestone for BayWa r.e. in the operational management of battery storage systems in Germany and beyond.”

Simon Slapka, Managing Director of Data Services GmbH, commented: “BESS are a science of their own and still a relatively young technology. Our approach combines deep technological expertise and advanced digital asset management methods, supported by close collaboration with leading software specialists, like TWAICE. We are proud of this achievement, having secured the contract in a comprehensive tender process against strong competition.”

Poul Mogensen, Managing Director of the Scale Fund, added: “Large scale battery storage is crucial to stabilising the power grid and reliably integrating wind and solar power into the grid, and this is exactly what the Alfeld BESS stands for. The battery park will, with its considerable size form part of the critical infrastructure and contribute significantly to the sustainable energy agenda. We are very confident that the choice of BayWa r.e. as asset manager and operator due to their strong expertise, proven track record and advanced software will ensure the successful and long-term operation of the Alfeld BESS.”