Essen/Zug, 28 May 2025 - Establishing a new standard for energy flexibility, RWE and terralayr close a 5-year, 50 MW / 100 MWh multi-asset capacity tolling agreement
RWE, one of the world’s largest operators of renewable and flexible assets, and terralayr have closed a five-year tolling agreement covering the market optimization of 50 MW / 100 MWh of storage capacity in Germany. The storage capacity is provided by a fleet of decentralized assets in the 50Hertz control area and is aggregated via terralayr’s flexibility platform to form a single 50 MW virtual battery that RWE will integrate into its trading operations from 2026 onward.
For providing the storage capacity, terralayr receives a fixed annual fee under a so-called “tolling contract.” Tolling agreements in the energy sector are specialized arrangements in which an asset operator grants a third party (the tolling partner) the right to market battery capacity while retaining technical operation of the asset.
Bart Beljaars, Head of Commercial Asset Optimisation for Continental Europe at RWE, emphasises: “Batteries are becoming increasingly important for a stable energy supply, and tetralayer’s virtual battery is a perfect complement to our rapidly growing portfolio of batteries and generation assets. By working with terralayr, we can utilise the flexibility of both RWE and customer batteries more effectively.”
Mikko Preuß, Chief Commercial Officer at terralayr, says: “A stable revenue is a crucial building block for financing battery storage projects. Through our collaboration with RWE, we can establish a new market standard with fixed remuneration structures, providing storage investors with access to stable revenues. We offer customers storage capacity, providing all the advantages of a physical battery storage system without them having to manage the physical systems themselves.”
New innovative model: Virtual battery replaces single-asset tolling structure
Unlike conventional tolling structures, where the tolling partner connects directly to a single physical battery, this deal is a multi-asset capacity toll – an innovative structure that aggregates several individual battery systems via terralayr’s flexibility platform. RWE will connect to terralayr’s flexibility platform to access the underlying storage capacity via a single virtual battery.
Thanks to the multi-asset capacity toll structure, operators of smaller battery storage systems can now conclude long-term purchase agreements with fixed remuneration rates for the first time. Previously, this was reserved for large storage systems.
At the same time, performance is improved, service life is extended, and operational risk is reduced by distributing it across multiple systems. Access via a single technical connection facilitates the integration of new systems and ensures uniform performance standards, even with very different storage systems.
Both companies intend to market further terralayr storage capacities in Germany based on the recently concluded contract. They are also working on solutions to offer fixed-price products to other battery investors and operators via the terralayr flexibility platform.
Energy flexibility with zero upfront Capex or balance sheet impact for the off-taker
Unlike owning or directly leasing a large-scale battery storage system, this model does not require RWE to make significant capital investments or carry lease-related liabilities on its balance sheet. Instead, the tolling fee is booked as an operating expense, giving RWE a flexible, scalable and balance-sheet-light solution.
About RWE Supply & Trading
RWE Supply & Trading is the interface between RWE and global energy markets. More than 2,000 employees of around 90 nationalities trade electricity, gas, commodities and CO₂ certificates, optimizing RWE’s conventional and renewable generation assets and offering bespoke risk-management solutions to industrial customers. The trading organization also manages the commercial optimization of RWE’s power plants and markets their electricity output. RWE develops, builds and operates battery storage projects in Europe, Australia and the United States. The company currently runs around 370 MW of battery capacity in Germany and more than 1,200 MW worldwide, backed by decades of experience in optimising and marketing both pumped-storage and battery assets.
About terralayr
terralayr is a fully integrated energy flexibility provider. terralayr addresses the massive global need for energy storage by aggregating its own as well as third-party battery storage assets. A cloud-like software platform makes energy flexibility accessible ‘as-a-service’ to many customer groups, including power producers, grid operators and large consumers of power, such as data centers. terralayr develops and operates a portfolio of its own battery storage assets, with currently two assets operational, several assets in construction and a total development pipeline of over 5 GW in Germany. The company’s leadership team is composed of industry experts with previous positions in companies such as Siemens, Deutsche Bank, RWE, BCG, Fluence, dare, Next Kraftwerke, Limejump, and Pexapark.