Deutsche Bank, Rabobank Underwrite Return’s €835 Million German Battery Financing

Deutsche Bank and Rabobank have underwritten €835 million in portfolio financing for European energy storage company Return to expand its battery storage capacity in Germany. Announced on 4 November 2026, the financing combines funding for physical battery storage assets with the company's Virtual Flexibility Portfolio (VFP). Three projects with a combined capacity of 117 MW are already under construction, with additional developments expected to enter the financing framework through 2027.

 

The investment supports Return's ambition to install at least 1 GW of battery storage capacity annually in Germany from 2027, representing planned yearly investments of €750 million to €1.2 billion, subject to market conditions. Its Virtual Flexibility Portfolio combines capacity from multiple battery installations into a single platform, allowing energy companies to manage electricity supply and demand fluctuations. This approach is particularly relevant as Germany integrates increasing volumes of wind and solar generation into its electricity system.

 

Read more: Banks Review El Niño Loan Risks as Repayment Options Emerge

 

Unlike conventional project financing, which typically requires separate arrangements for each battery installation, Return's portfolio structure allows additional eligible projects to access financing under an established framework. The company previously implemented a similar model in the Netherlands through its Sirius battery storage project. The German financing extends this approach by linking physical battery assets with contracted flexibility services.

 

Return has also expanded its commercial agreements with major energy companies. ENGIE recently increased its contracted battery flexibility capacity in Germany to 400 MW, while Centrica Energy signed a separate 100 MW agreement. These partnerships provide customers with access to flexible storage capacity across multiple assets rather than relying on individual installations.

 

Daniel Witvoet, Chief Financial Officer at Return, said, "As demand for energy flexibility grows, we need to scale not just our battery storage capacity, but also the way we finance it." Dominik Thumfart, Head of Infrastructure & Energy Origination at Deutsche Bank, highlighted battery storage's role in supporting grid stability and renewable energy integration. The financing provides a framework for expanding Return's German project pipeline as demand for flexible electricity capacity increases.

 

Source: Return