The seven-year agreement covers 55 megawatts (MW) of power drawn from a broader 100MW portfolio operated by Terralayr. The battery systems are spread across eight locations and are bundled using Terralayr’s flexibility platform. Vattenfall will manage and optimise part of the capacity via its trading operations based in Hamburg.
The deal introduces a variation of the tolling concept, traditionally used in large-scale energy transactions. In this case, Vattenfall pays a fixed fee to access distributed storage capacity rather than relying on a single physical asset.
“Due to its decentralised nature, Terralayr’s battery storage network can be ideally integrated into our automated trading processes,” said Honey Duan, director of commodity origination at Vattenfall. “In this way, we reduce the cost of imbalances in our portfolio and can provide flexibility whenever it brings the greatest benefit to the electricity market.”
The companies said the model allows for smaller-scale battery systems to be included in large-capacity tolling arrangements—an approach previously considered difficult with conventional frameworks.
Vattenfall stated that the agreement supports the more efficient integration of renewable energy by helping to balance intermittent power generation from wind and solar, potentially reducing the need for costly grid interventions.
Terralayr remains responsible for the development, financing, and operation of the battery systems, which are aggregated and managed via its proprietary cloud-based platform.
The operational start for the capacity use is scheduled for the end of 2025.
