LONDON, Sept 12 (Reuters) - Power firm VPI, backed by the world's largest energy trader Vitol, will invest up to invest up to 450 million euros ($496 million) over the next three to five years in battery projects in Germany, VPI’s chief executive told Reuters.

Germany plans to rapidly expand its renewable power capacity to account for 80% of the country's electricity by 2030 from around 40% now, which will also require an increase in energy storage to help balance supply and demand on the system.

VPI already owns power assets in Britain and Ireland and said the battery joint venture with German energy storage firm Quantitas Energy would be its first investment in the country.

Due to high levels of solar power, which produce more electricity during sunny mid-day peaks, the Germany power market can see extreme intra-day price volatility. Companies with batteries can then benefit from selling power during highs and charging when prices are low or even negative.

"In Germany a lot of the opportunity (for batteries) is on the wholesale market... and that is because a lot of the renewable base is solar which creates price differentials within the day," Jorge Pikunic, VPI Chief Executive said in an interview.

The investment is aimed at developing up to 500 MW of battery storage capacity over the next three to five years and the joint venture expects to build 10 projects, mostly based in northeast Germany, a region rich with wind power generation.

Pikunic said individual projects would be different in scale but the majority of the projects would have a 60 MW capacity.

He did not disclose the ownership split of the venture but said VPI would be the majority shareholder.

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https://www.reuters.com/business/energy/vitol-backed-vpi-invest-up-450-mln-euros-german-battery-projects-2024-09-12/