Asset manager MEAG has successfully acquired a 92.5MW/231MWh Battery Energy Storage System (BESS) in Germany, which is fully merchant-financed. The optimisation firm, Entrix, will manage trading in the electricity market for this system. MEAG, which manages assets for insurance companies Munich Re and ERGO Group, completed the acquisition of the Metelen battery storage facility located in Münsterland, North Rhine-Westphalia. Entrix will begin trading the BESS once it becomes operational in the latter half of 2025.
MEAG purchased the Metelen project from developer and contractor SMA Altenso, a part of the larger SMA Group, in October 2024. Altenso will assist in building and operating the facility. The fully merchant-financed nature of the BESS is significant as it operates without any contracted revenue structures such as tolls, floors, or swaps. This is noteworthy given the German market’s shift from predominantly merchant financing to an increasing consideration of contracted structures.
At the Energy Storage Summit Germany, which ran concurrently with the Battery Show Europe 2025 in Stuttgart from June 3-5, the transition in financing models was a key topic of discussion. Panelist Amanda Niklaus, global head of markets for Nordic BESS owner-operator Ingrid Capacity, noted that while most operational assets in Germany have been fully merchant financed, there is now hesitation among lenders regarding fully merchant financing for larger assets of 50MW and above.
Entrix CEO Steffen Schulzchen commented on the deal, stating, “A fully merchant battery like Metelen is perfectly suited to unlocking the revenue potential of our multi-market strategy.” In contrast, Jürgen Mayerhofer, CEO of optimisation firm Enspired, indicated that nearly every BESS investor in Germany is considering toll-like structures for their projects. However, MEAG’s decision for fully merchant financing highlights that not all investors rely on contracted structures to fund their projects.
Currently, the main revenue sources for large-scale BESS in Germany include frequency containment reserve (FCR), automatic frequency restoration reserve (aFRR), as well as the day-ahead and intra-day wholesale electricity markets. The revenue mix varies based on the time of day, the season, and the duration of the BESS, with aFRR becoming more significant than FCR generally. The FCR market has a capacity of 800MW bidirectionally, while aFRR operates at 2GW in each direction. Longer-duration BESS particularly focus on the more energy-intensive aFRR.
While tolls can mitigate risks associated with market saturation, they may also limit potential gains if the toll fees are set too low.
The Energy Storage Summit focused on three main themes: revenue and trading, battery lifecycle management, and optimisation tools. Participants explored innovative strategies to enhance asset performance and longevity, with particular emphasis on key markets such as Germany, Italy, and the UK.
The upcoming Battery Asset Management Europe 2025 event, scheduled for December 2, 2025, in Rome, will continue to address the future of energy storage asset management. Additionally, the Energy Storage Summit 2026 will be held on February 24, 2026, in London, promising an engaging experience with workshops, industry discussions, and networking opportunities.
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