Bank Nord/LB has announced an €87 million financing package for the 209MWh Stendal Battery Energy Storage System (BESS) project in Germany, marking a significant step in the country’s renewable energy landscape. The project, being developed by Nofar Energy, is set to go live in 2026 and is the second large-scale BESS project to be financed in Germany.
Located in Stendal, Saxony-Anhalt, the BESS site will help stabilize the local grid by storing energy for later use. A key feature of the project is a first-of-its-kind Tolling Agreement, also known as a fixed-price FPA, which will protect against market volatility and provide a stable and predictable revenue stream for Nofar Energy.
Florian Hock, senior director at Nord/LB, commented, “This deal marks a significant milestone for Nord/LB in Germany as we continue to deliver on our mission to finance important projects that accelerate the renewable energy transition across Europe. This BESS deal is our first in Germany, and we’ll utilize our comprehensive financing expertise to help develop future ones across the country that are essential to solving the solar and wind intermittency challenge.”
Nadav Tenne, CEO of Nofar Energy, expressed his satisfaction with the financial close, stating, “We are delighted to announce the successful financial close of the Stendal project, our first energy storage venture in Germany. This milestone further solidifies Nofar’s leadership in the European BESS market. It also builds on another key achievement—securing an innovative tolling agreement for the project just recently, which ensures revenue stability.”
Tenne also emphasized the significance of the partnership with Nord/LB, saying, “I extend my sincere gratitude to the NORD/LB team for their trust and collaboration. As one of Europe’s leading financial institutions, their support has been invaluable, and I look forward to building on this partnership in Germany and beyond.”
The Stendal BESS project highlights the growing importance of energy storage solutions in supporting the integration of renewable energy sources, ensuring grid stability, and addressing the challenges posed by the intermittent nature of solar and wind power.
