Dutch company Return, which specialises in energy storage solutions, has begun construction of its first battery storage portfolio in Spain after finalising the transaction. According to the company, the three projects, with a combined capacity of 55 megawatts and 220 megawatt-hours, make up the largest independent portfolio to date to have secured bank financing and entered the construction phase.

The three projects are located in the province of Biscay, in the towns of Güeñes, Baracaldo and Lezama, and their construction will create around 50 full-time local jobs. All three are expected to enter commercial operation in the second half of 2027.

Transaction financing
Return’s integrated model brings together the commercial, financial and delivery partners needed to build its projects, while retaining long-term ownership and operation of the assets. To launch construction of this portfolio, it has brought on board French energy company Engie, with which it has signed a ten-year power purchase agreement.

Dutch bank Rabobank has meanwhile provided the €50 million needed for construction, as well as additional credit guarantees. Chinese technology company CATL will supply the battery technology and provide long-term maintenance services, while Spanish company Enerland will be responsible for on-site project execution.

Priority market
Return sees Spain as one of its priority markets, driven by the growing need for flexible capacity created by the rapid expansion of renewable energy generation. Battery storage enables electricity to be captured when solar and wind generation is high and released when the grid needs it most, thereby helping to balance supply and demand and maintain the stability of the electricity system.

With a capacity of 55 megawatts and 220 megawatt-hours, the batteries will be able to deliver 55 megawatts of power simultaneously and sustain this level of output for approximately four hours before needing to be recharged.

Attractive  investment
Return’s Director of Spain, Steve Sceery, believes that battery storage in Spain “has established itself as an attractive infrastructure asset for investment”, and explained, “We have successfully brought together the long-term revenue model, financing, technology and delivery capabilities needed to move these projects into the construction phase. It is a significant step for Return in Spain and another key part of our European storage platform.”

According to Engie Iberia’s Managing Director of Energy Supply and Management, Jean-Nicolas Lejeune, battery storage “is becoming a key component of modern electricity systems”. Meanwhile, Rabobank’s Executive Director of Project Finance, Carol Kort, highlighted the bank’s experience in financing renewable energy and storage projects across Europe, which they will bring to this project with Return “to launch its first battery storage portfolio in Spain”.

^{Photo: Return}