Hogan Lovells Cadwalader advises Return on a €835 million portfolio financing for battery storage projects in Germany

The financing combines physical battery storage assets with Return’s Virtual Flexibility Portfolio and will support the company’s further growth in the German market. Three battery storage projects with a combined capacity of 117 MW are already under construction and covered by the new financing framework. Return plans to install at least 1 GW of battery storage capacity annually in Germany from 2027 onwards. The expansion is intended to meet growing demand for flexible energy capacity as increasing volumes of wind and solar power are integrated into the German electricity system.

Return’s Virtual Flexibility Portfolio combines capacity from multiple battery storage assets into a single virtual portfolio, providing energy companies with scalable access to flexible capacity to manage their electricity portfolios and respond to fluctuations in renewable energy generation.

The portfolio financing provides a scalable structure under which additional eligible projects can access financing as they progress towards financial close, rather than requiring separate financing processes for each individual development.

“This is a highly innovative financing that combines a sophisticated portfolio structure with the specific requirements of the energy storage sector. Our team was able to draw on its extensive experience in complex financings and its deep understanding of the energy and infrastructure sector to support Return in establishing a scalable financing framework for its continued growth in Germany,” said lead partner Carla Luh.

Hogan Lovells Cadwalader provided comprehensive legal advice to Return in connection with the financing. The cross-practice team was led by partner Dr. Carla Luh and included counsel Stipe Bojanic, senior associate Tobias Ulbrich, senior business lawyer Kira Müller, associate Marko Skraba and foreign associate Aysegül Sargin, who advised on all financing matters.

The due diligence team included partners Dr. Tobias Faber, Dr. Tim Heitling, senior counsel Dr. Florian-Alexander Wesche, counsels Kristina Laewen, Katharina Rath, Dr. Daniel Neudecker and Damian Sternberg, senior associates Pia Heckenberger and Nurelia Kather, associates Juhani Plümacher, Annika Nuß, Elisabeth Ruyter, Esther Schnell, Marte Marlene Wagner and Dr. Niklas Jasper, as well as trainee Manuel Plonsky.

Senior associate Dr. Maximilian Frystatzki advised on corporate law, while counsel Sebastian Oebels advised on hedging matters. Dutch law advice was provided by counsel Annebeth Bleeker, senior associate Art van der Pols and associate Femke van Dijk.