Leading global law firm Herbert Smith Freehills Kramer has advised a syndicate of 11 lenders on the c.€440 million financing of a portfolio of 11 battery energy storage system (BESS) projects under construction with a capacity of 790 MW located across various parts of Germany.
The transaction represents a significant milestone in the continued development and scaling of battery storage infrastructure in Germany, supporting the integration of renewable energy and enhancing grid stability.
The projects are being developed by Kyon Energy, a subsidiary of TotalEnergies. Following financial close, Allianz Global Investors has acquired a 50% stake in the portfolio from TotalEnergies.
The Herbert Smith Freehills team was led by partners Matthew Job and Charlotte Whight together with senior associate Nicholas Gerovasilis from London, and Dr Hannes Jacobi from Frankfurt. The wider team included partners Nick May, Stefanie Herkert, Prof Dr Silke Goldberg, Dr Christoph Nawroth, Dr Marius Boewe, Dr Steffen Hörner and Michaël Armandou, of counsel Dr Sebastian Schürer, Artem Soloshchenkov and Hannes Riedel, senior associates Tim Abendschein, David Rasche, Jannis Bille and Eva Juergens, and associates Kimia Famil Dardeshti, Laura Boustani, Miriam Stamm, Jan Diedrichs, Alexandre Rakotovao and Sophia Kronis, from across the firm’s London, Frankfurt, Düsseldorf and Paris offices.
Partners Matthew Job and Charlotte Whight commented: “We are delighted to have advised the lenders on this landmark transaction in the German BESS sector. Financing the construction of 11 projects under a single portfolio financing demonstrates the bankability of BESS in Germany, a technology that is vital to balancing the grid alongside the increased use of intermittent renewable energy sources.”
Partner Dr Hannes Jacobi added: “As battery storage projects continue to grow in scale, lenders and sponsors are increasingly looking for portfolio financing structures that can support the next phase of the energy transition. This transaction builds on our extensive experience advising on pioneering energy storage financings and demonstrates our ability to draw on our European network to carry out complex cross-border transactions seamlessly.”
Société Générale Corporate & Investment Banking acted as financial adviser.
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