Partners Group to invest in green flexibility, a developer of large-scale battery storage systems in Germany

Partners Group, one of the largest firms in the global private markets industry, acting on behalf of its clients, has agreed to invest in green flexibility (or “the Company”), a developer and operator of large-scale battery energy storage systems (“BESS”) in Germany. Through Partners Group’s initial equity commitment of up to EUR 400 million and complementary debt financing, green flexibility will have more than EUR 1 billion to invest in driving Europe’s energy transition.

green flexibility specializes in developing and operating large-scale battery storage systems that serve as the backbone of modern, flexible energy infrastructure in Europe. The expansion of intermittent renewable energy sources and the retirement of baseload capacity in Germany are increasing fluctuations in electricity generation, driving price volatility and grid instability. BESS store excess energy during periods of ample supply and then release it when needed, helping to stabilize the grid, reduce curtailment, and smooth energy costs for consumers and businesses. The Company aims to execute an extensive pipeline of BESS projects and establish itself as a leading Independent Flexibility Provider ("IFP"), which involves monetizing storage capacity through long term contracts. By incorporating advanced software, artificial intelligence, and leveraging strong local relationships, green flexibility is also expediting project development and construction. The Company is set to benefit from thematic growth trends in Germany, including the continued expansion of renewables within the energy mix and the increasing need for grid flexibility.

Partners Group will work with green flexibility’s management team, which has extensive experience in successfully scaling energy businesses, to transform the Company into a leading battery storage platform. The Company is led by serial entrepreneur and industry expert Christoph Ostermann, founder of sonnen, a global market leader in home storage systems. Christoph and the Company’s other founders also previously developed and commercialized one of Europe’s first Virtual Power Plants.

David Daum, Partner, Head Infrastructure Europe, Partners Group, says: “green flexibility will act as a key enabler of the energy transition in Germany by facilitating the integration of intermittent renewable energy into the country’s power grid. The Company represents an exciting opportunity to partner with a highly experienced, proven management team to build a battery storage platform in the largest power and electricity market in Europe. We look forward to working with them on our transformational value creation plan.”

Igor Makar, Member of Management, Infrastructure Europe, Partners Group, adds: “green flexibility has strong infrastructure characteristics underpinned by the essential nature of battery storage assets. We were also attracted by green flexibility’s innovative approach to the development process, which sets it apart from other market players. In line with our entrepreneurial governance model, we have compiled a talented team of operating directors that will support management on achieving our shared vision.”

Christoph Ostermann, Chief Executive Officer, green flexibility, comments: “BESS is widely considered the most flexible technology for providing a versatile and efficient energy storage solution, making it a key component in modernizing the energy grid. In addition, the technology can be deployed faster than other alternatives, which is crucial for meeting immediate grid stability needs. As an experienced infrastructure investor and business builder, Partners Group is the right long-term partner for us as we look to scale the Company.”

Partners Group’s infrastructure business has USD 27 billion in assets under management. Partners Group was advised by A&O Shearman as legal advisor.