Shell expands role in VPP market with acquisition of German operator Next Kraftwerke

By Molly Lempriere
Share on linkedin
LinkedIn
Share on twitter
Twitter
Share on reddit
Reddit
Share on facebook
Facebook
Share on email
Email
Image: Shell/James Goldman.

Shell Overseas Investments BV has acquired German virtual power plant (VPP) operator Next Kraftwerke, expanding its footprint in the space.

The energy giant previously owned 34% of the company, and is expecting the acquisition of the rest from a consortium of shareholders to complete during the second quarter of 2021, subject to regulatory approval.

It will allow Shell to grow by adding smaller renewable assets to our portfolio, said David Wells, VP Shell Energy Europe.

“The complementary skills of the two companies will also support utility-scale large renewable projects by providing a wide range of hedging and risk management options.”

Next Kraftwerke currently operates over 10,000 decentralised energy units across Germany, Belgium, Austria, France, Poland, the Netherlands, Switzerland and Italy.

Additionally, it announced a joint venture with Japanese electronics giant Toshiba in November 2020, to study the possibility of VPP solutions based in Japan.

Hendrik Sämisch, founder and CEO of Next Kraftwerke added that bringing the two companies together will help accelerate the transition to a decarbonised energy system, “through the wider deal opportunities and trading synergies that will come from the expected rapid increase in demand for renewable energy trading contracts.”

The acquisition follows Shell buying UK based VPP operator Limejump in February 2019, which now operates as a wholly owned subsidiary. In January, the company celebrated the addition of 170MW of assets to its portfolio, as the demand for flexibility continues to grow apace.

Speaking to Energy Storage News today, Catherine Newman, CEO of Limejump said it was exciting to have one of Europe’s largest VPPs – with a capacity of 8450MW – as part of Shell.

“We work in very different areas of the market, so there's no concerns in terms of treading on each other's toes. I'm really looking forward to working with them more closely, and looking at the synergies we can find – a great addition to Shell's stable.”

Read Next

January 20, 2022
The engineering, procurement and construction (EPC) team at international construction firm Burns & McDonnell has brought online 60MWh of battery energy storage systems (BESS) in West Texas.
January 20, 2022
Fluence is forming a new company with independent power producer (IPP) ReNew Power, aimed at providing energy storage solutions in India.
January 18, 2022
Energy storage will play an important role in US power systems between now and 2050, offering the opportunity to displace fossil fuels with low-cost renewable energy and balancing supply and demand across multiple regions. 
January 17, 2022
The start of work on a hybrid renewable energy project combining large-scale wind power, solar PV and energy storage, marks “an important moment in South Australia’s clean energy transition,” the state’s energy minister has said. 
January 12, 2022
Gresham House, a stock exchange-listed investor in battery storage in the UK and Ireland, has said the majority of its development pipeline projects could have at least two hour durations of storage when built.

Most Popular

Email Newsletter