Swedish battery energy storage system (BESS) developer Ingrid Capacity and Swiss energy company Alpiq have signed an agreement to explore long-term offtake contracts for projects totaling up to 500 MW across northern Europe.
The agreement builds on an existing project in Finland: the 45 MW/90 MWh battery storage system in Pedersöre, jointly owned by Ingrid Capacity and French asset manager Mirova.
The partnership combines Ingrid Capacity’s battery storage portfolio and operational expertise with Alpiq’s financial strength and ability to offer long-term offtake agreements that could facilitate project financing. The companies said the arrangements are intended to enable more efficient financing structures and give investors flexible, long-term exposure to energy markets through this asset class.
Amanda Niklaus, chief revenue officer at Ingrid Capacity, said financing and commercial agreements are becoming just as important as technology and operational performance as the Nordic battery market evolves.
The company has a battery storage portfolio of 950 MWh, including projects in development, under construction and operational.
The partnership aims to secure part of future revenues through long-term offtake agreements. Under such contracts, a buyer commits to purchasing electricity, storage capacity or services under agreed terms. These commitments can give lenders greater certainty and help projects secure financing.
Batteries can earn revenue across several markets, including electricity trading, grid balancing and ancillary services. However, these revenue streams fluctuate with electricity prices and power system requirements.
Aivaras Simkunas, Alpiq’s head of energy solutions for the Nordic countries, said the company’s financial backing and long-term offtake contracts could help secure project financing while preserving flexibility in Nordic electricity markets.
From pv magazine France
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