BNP Paribas has entered into a partnership with UK-based energy storage developer Eclipse Power to accelerate the deployment of Battery Energy Storage Systems across Europe. The collaboration includes a strategic equity investment by BNP Paribas in Eclipse, signalling a deeper financial commitment to the region’s expanding storage market.

Battery Energy Storage Systems are designed to capture surplus renewable electricity and release it during periods of high demand. By smoothing fluctuations in generation and consumption, these systems enhance grid stability and reduce reliance on fossil-fuel peaking plants. As renewable penetration increases across European power markets, storage capacity is becoming central to maintaining reliability.

Combining Development Expertise with Structured Finance

Founded in 2022, Eclipse builds and operates utility-scale battery storage projects that support grid stabilisation, renewable integration, and overall system flexibility. The company has positioned itself across the storage value chain, combining project development with grid-scale optimisation and continuous trading capabilities.

The partnership will enable asset owners to access tailored financing structures for battery storage projects. BNP Paribas will contribute credit capacity and transaction structuring expertise, while Eclipse will provide optimisation services and trading strategies designed to enhance revenue stability.

Together, the firms plan to offer long-term offtake solutions that improve project bankability. By integrating financing with operational expertise, the collaboration aims to reduce asset-level cost of capital and address merchant risk, one of the principal uncertainties facing standalone storage projects.

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Managing Risk in Merchant Storage Markets

Unlike conventional generation assets that often rely on fixed power purchase agreements, many battery storage projects operate in merchant markets. Revenues are influenced by wholesale price volatility, ancillary service payments, and capacity market participation.

Under the agreement, the two companies intend to provide hedging instruments that mitigate revenue uncertainty. Structured financial solutions are expected to improve cash flow predictability, making projects more attractive to institutional investors and infrastructure funds.

Eclipse’s optimisation and trading expertise will be integrated into these financing models, enabling more accurate forecasting of revenue streams across diverse European markets.

Supporting Europe’s Energy Resilience

The partnership aligns with Europe’s broader objectives around energy security and strategic autonomy. As the European Union continues to expand renewable generation, grid flexibility has become a strategic priority.

BNP Paribas indicated that the collaboration is designed to strengthen market efficiency and system resilience by pairing industrial-scale storage capabilities with institutional finance. The initiative is positioned as a mechanism to help utilities, independent power producers, and corporate energy users navigate the transition to a lower-carbon power system.

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Scaling Capital for Storage Deployment

For Eclipse, the equity investment provides additional capital to expand its pipeline of utility-scale projects. Access to structured financing and long-term revenue solutions may accelerate deployment timelines across multiple European jurisdictions.

For BNP Paribas, the investment reinforces its role in sustainable infrastructure financing, particularly in technologies that underpin renewable integration rather than generation alone.

As battery storage becomes increasingly central to Europe’s decarbonisation and grid modernisation strategies, partnerships that combine operational depth with financial structuring are likely to shape the pace of deployment. The BNP Paribas and Eclipse agreement reflects a model in which capital, risk management, and energy market expertise converge to scale critical flexibility assets across the continent.

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