The Kyon Energy Alfeld battery storage project is a 137.5 MW battery energy storage system located in Alfeld, Lower Saxony, Germany, and it has now reached grid connection ahead of full operation. Kyon Energy connected the 282 MWh facility to Avacon’s 110 kV substation, with commercial operation scheduled for August 2026.

Alfeld Sits Within a Fast Moving German Battery Storage Sector

Kyon Energy itself has changed hands since the original approval, having been acquired by TotalEnergies in January 2024, while the Alfeld asset is financed through Denmark’s Scale Fund. Its 275 MWh design once looked record setting, but Germany’s ceiling has since jumped again with BW ESS’s Klostermansfeld BESS, a facility with up to 5,700 MWh of storage capacity that entered construction this year.

Project Overview

• Project Name: Alfeld Battery Storage Project
• Location: Alfeld, Lower Saxony, Germany
• Project Value: Not publicly disclosed
• Client/Owner: Scale Fund, a Danish Alternative Investment Fund
• Main Contractor: Kyon Energy, acting as EPCM contractor and operator, now owned by TotalEnergies
• Key Components: 137.5 MW power output and 282 MWh of storage capacity, connected to Avacon’s 110 kV substation
• Procurement Model: EPCM delivery led by Kyon Energy, with battery equipment supplied through a partnership between Nidec Conversion and Obton
• Construction Start: Approved in November 2023, with construction proceeding through 2024 and 2025
• Expected Completion: Commercial operation scheduled for August 2026
• Strategic Impact: Provides grid balancing services without subsidy support, helping integrate wind and solar generation into the German grid

Project Team

• Client/Owner: Scale Fund
• Developer and Operator: Kyon Energy (owned by TotalEnergies)
• Equipment Partner: Nidec Conversion
• Financing and Development Partner: Obton
• Grid Operator: Avacon Netz GmbH

Reported 14th November 2023: Kyon Energy, a prominent energy storage developer, has received approval for its ambitious plan to construct a 137.5-MW/275-MWh battery energy storage system (BESS) in Alfeld, Lower Saxony, Germany. This project is set to become the largest approved storage initiative in Europe, surpassing the current record by 50%. The BESS is designed to supply electricity to one million households for an hour, contributing significantly to the region’s renewable energy integration.

The Alfeld battery project marks a substantial achievement for Kyon Energy, known for its focus on large-scale industrial storage facilities. Construction is slated to commence in 2024, with commissioning expected by the end of 2025. The facility’s strategic location near a local substation enhances its ability to support Germany’s growing renewable energy generation.

This announcement follows Kyon Energy’s recent green light for another significant project, a 58-MW/116-MWh storage facility near Magdeburg. The company’s impressive portfolio now includes permits for nearly 500 MW of energy storage capacity in Germany, demonstrating its commitment to shaping the country’s energy landscape.

Also read: Kyon Energy Receives Approval for 58 MW Battery Storage Project

The approval coincides with positive legislative changes in Germany’s energy law, providing a boost to BESS developers. The recent reform extends the exemption of energy storage assets from grid fees until August 2029, offering a three-year extension from the previous deadline. This adjustment is anticipated to catalyze large-scale investments in the German energy storage market, providing developers and investors with a more favorable timeframe for project development.

Lars Stephan, Senior Manager for Policy and Market Development at system integrator Fluence, emphasized the significance of this legislative change, stating that it removes a significant hurdle for large-scale investments in Germany. The reform not only addresses grid fee exemptions but also mandates regulators to consider system flexibility, aligning with the evolving landscape of energy storage.

Kyon Energy’s commitment to advancing energy storage infrastructure aligns with Germany’s broader goal of achieving a sustainable and independent energy future. With their growing portfolio, Kyon Energy is poised to play a crucial role in expanding storage capacities, facilitating the integration of renewable energies, and enhancing the security of energy supply in Germany. The Alfeld project, in particular, symbolizes a milestone in making the German electricity grid more flexible and resilient.