ENGIE’s Daronnat: pricing flexibility in the German battery market

Germany’s legally binding target to have 80% of electricity coming from renewable energy sources by 2030 requires the country’s renewable energy capacity to reach around 300 gigawatts (GW). To keep supply and demand balanced amid this level of intermittent production will require substantial growth in the battery energy storage systems (Bess) market, say analysts.    

ENGIE has big ambitions for participation in this market, aiming to have 10GW of installed battery capacity globally by 2030, up from the current capacity of around 3GW. The firm’s origination work around its battery portfolio includes optimising its own assets and operating batteries for clients. 

In this video, Martin Daronnat, head of flexibility and structured origination in Germany at ENGIE International Supply & Energy Management, discusses the booming German battery market and the different options available for bringing battery projects to market.  

He explains the vital role of flexibility purchase agreements (FPAs), the different types available and the structuring and risk management expertise they require. 

Key discussion points

0.55 In 2025, almost 12GW of Bess capacity was contracted in Europe, triple the amount in 2024. Why is Bess taking off so strongly now?

4.23 What factors make Germany the fastest growing market in Europe for batteries? 

8.25 In a typical Bess project, who are the main stakeholders and what are the different physical arrangements available to bring a project to market? 

12.19 How do flexible purchase agreements work? 

16.38 What evolution have you seen so far in FPA contracts? 

19.36 Bess duration is trending towards longer charge times. What is the longest duration project in Germany and is this the biggest factor impacting revenue?

21.43 How important is market design for attracting battery projects?

25.28 What types of conversations do you have with risk managers around FPAs? 

29.58 What impact is the Middle East crisis having on existing and upcoming battery projects?