Challenges in Financing and “De-Risking” BESS Projects
Availability of “bankable” tolling capacity and consideration of new risks arising from FCAs and co-location
Battery Energy Storage Systems (BESS) play a key role in the energy transition and the decarbonization of electricity supply. Germany will therefore require a massive expansion of utility-scale battery storage by the mid-2030s. A large share of these projects will rely on debt financing, which is difficult to secure based solely on merchant revenues. Tolling models can help bridge this financing gap, but only if tollers combine operational expertise, risk capital, and sufficient creditworthiness.
In a joint white paper, PwC and FfE examine the role of tolling models in de-risking BESS projects and improving their bankability.
The white paper analyzes, among other topics:
- The interdependencies between commercialization models and project financing
- The growing importance of tolling structures for the bankability of BESS projects
- Future demand for tolling capacity in the German market
- The impact of FCAs, AgNes, and co-location on revenues, risks, and financing conditions
