The fund provides a senior loan of approximately €2.5 million for the realization of Watergeuzenbatterij B.V.: a 10 MW / 20 MWh battery project next to Windpark Papemeer in Zoeterwoude.
The battery is being realized by an experienced development team with expertise in both the technical field and the energy market. The project contributes to the smarter use of sustainable electricity and increasing the flexibility of the Dutch energy system.
Smarter use of the existing grid connection
A special aspect of Watergeuzenbatterij is that the battery uses the grid connection of the adjacent wind farm. Capacity-limiting contracts (CBCs) are linked to the connection. Within these agreements, the available connection capacity can be increased and room is created for the battery, with restrictions applying at certain times for the withdrawal and feed-in of electricity.
This construction makes it possible to use the available grid capacity more smartly and to realize the battery at this location. At the same time, the combination of a shared grid connection and CBC contracts requires careful structuring of the technical, financial, legal, and commercial agreements.
Our role: making a complex structure bankable
StartGreen Capital is the investment advisor for the ASN Energy & Innovation Fund. The added value of the deal team in this financing lay in translating the innovative project structure into a bankable proposition.
By carefully analyzing and contractually securing the risks surrounding the shared grid connection, the CBC contracts, and various operational agreements, a robust financing structure could be established, making the project feasible.
Stijn Welage and Guus Bronkhorst: “What appeals to us about the Watergeuzenbatterij is that the project shows that even more complex energy projects can be bankable when technology, contract structure, and risk management are well aligned.”
Flexibility for the energy system
The business case for Watergeuzenbatterij does not rely on a single income stream, but on participation in various electricity and balancing markets. This allows the battery to be deployed where its flexibility adds the most value at that moment.
With a capacity of 10 MW and a storage capacity of 20 MWh, the battery can temporarily store large amounts of electricity. To illustrate: 20 MWh corresponds to enough electricity to power approximately 23,000 households for two hours. The battery can store excess wind energy for use at other times, helps absorb peaks, and thus contributes to a more flexible electricity grid and better utilization of sustainable generation.
Local ownership
A special feature of the project is also the local involvement. Through Rijnland Energie Coöperatie, 465 local residents have a say in the battery and can participate financially. There was a lot of interest in the required €700,000 in participations: local residents subscribed for approximately €1.5 million. In this way, the local community is not only involved in the development of the energy system but can also participate financially in the project.
The transaction was established in collaboration with Watergeuzenbatterij B.V., Emmett Green, Rijnland Energie Coöperatie, Meewind, ASN Impact Investors, StartGreen Capital, BJTK, Odura, Montel, and VanOlde.
About the ASN Energie & Innovatiefonds
The ASN Energie & Innovatiefonds, with a portfolio of several hundred million euros, focuses on a wide variety of technologies that are essential for the energy system of the future. From energy storage and charging infrastructure to circular production and sustainable mobility – the fund offers customized financing through loans and equity. In this way, the energy transition in the Netherlands is accelerated and innovation for a sustainable society is stimulated.
Want to know more about the ASN Energie & Innovatiefonds? Then view the fund page.
