Palladio Partners and Voltfang launch battery storage system partnership

Infrastructure-focused investor Palladio Partners and Voltfang, a specialist in battery storage solutions and development, have entered into a binding partnership aimed at accelerating the energy transition through large-scale storage projects. The two companies are committing to a long-term collaboration focused on the development, financing, implementation and operation of large-scale battery storage projects that actively contribute to the stability, security and efficiency of the power grid. Battery storage systems are vitally important for the energy transition, with the flexibility they create offering benefits on a large scale. The first projects to emerge from the partnership are expected to reach construction readiness later this year. The capital for projects comes from a fund managed by Palladio Partners, designed for institutional investors and focused on transforming infrastructure in Germany.

Investment volume of EUR 250 million targeted nationwide by the end of 2029.
“With the growing demand for electricity storage and the continued decline in technology costs, this is a particularly attractive time to be investing in the expansion of battery storage,” says Oliver Sauer, partner at Palladio Partners, commenting on institutional investors’ interest in the sector. “Voltfang offers a sustainable range of solutions that align very well with our transformation fund and therefore with what our investors are seeking. We’re excited about this collaboration!”

“When implementing projects on this scale, two factors are crucial: scalable battery expertise and robust financing. While Palladio offers excellent access to capital and a deep understanding of the energy markets, Voltfang brings to the partnership technological expertise that is unmatched in the German market. Together, we are well-positioned to make a meaningful contribution to the energy transition!” says Voltfang founder David Oudsandji.

Based on current market conditions, the joint projects aim to invest approximately EUR 250 million in Germany’s battery storage infrastructure over the coming years.

As the operational partner, Voltfang will be responsible for planning, constructing, operating and maintaining the projects, while Palladio Partners will handle commercialization and financing. The partnership is backed by capital from a fund managed by Palladio Partners for institutional investors – many of them from the world of retirement provisions, such as insurance companies, pension funds and pension schemes – that is focused on transforming infrastructure in Germany.

The resulting energy storage systems are designed to actively support the stability, security and efficiency of the power grid. They come into play when the grid is under strain during periods of high solar power feed-in and are suitable for both the balancing energy and wholesale energy markets. 

Joint projects run by Palladio Partners and Voltfang will include the application of second-use modules – one of Voltfang’s particularly sustainable solutions on offer. In this approach, unused battery modules originally intended for electric vehicles are tested, requalified and repurposed for grid-scale applications (large storage systems for use in the power grid). 

Massive expansion of storage capacities needed for the energy transition
With the rapidly increasing share of variable renewable energies in Europe’s energy mix – combined with the ongoing decommissioning of fossil fuel power plants – battery energy storage systems (BESS) have become essential to both the energy transition and the stability, security and efficiency of the power grid. They not only help stabilize the grid and smooth electricity prices but also improve the integration of renewable energies into the electricity system. 

According to estimates by the Fraunhofer Institute for Solar Energy Systems (ISE), Germany will require around 100 gigawatt hours (GWh) of electrical storage capacity by 2030 and around 180 GWh by 2045. Large-scale storage batteries in Germany currently have a total capacity of only 3 GWh. 

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About Palladio Partners
Palladio Partners is one of the leading investment boutiques for private markets.

An owner-managed specialist for the asset classes of infrastructure investments, private equity and private debt, it was founded in Frankfurt in 2012. Today, with its payroll of approximately 100 staff members, it has assets of EUR 10 billion under management (including investment advisory mandates). Palladio Partners administers its own funds, advises investors on realizing their individual investment strategies, and offers access to attractive investment opportunities in Germany and globally.

Palladio Partners is enduringly committed to German infrastructure – through investments and its active participation in associations such as “IDI - Initiative deutsche Infrastruktur e.V.” It is a signatory to the UN Principles for Responsible Investment (UN PRI). For further information, please visit www.palladio-partners.com 

About Voltfang
Voltfang is a cleantech company based in Aachen, Germany, specializing in high-performance European energy storage systems for industrial, commercial, and grid-scale use. Its battery systems are built using requalified EV batteries from the European automotive industry. Combined with its advanced energy management system, Voltfang helps customers improve energy efficiency, increase self-consumption, and significantly reduce both energy costs and carbon emissions. 

Founded in 2020 at RWTH Aachen University, Voltfang quickly became one of Europe’s most promising battery storage innovators. Customers include major players such as Aldi Nord, Alba Group, Fiege Logistik, and Goldbeck. 

Voltfang was awarded the German Sustainability Award and the German Innovation Award in 2024. The company also received the EES Award in 2022. Founders Afshin Doostdar and David Oudsandji were named to the Forbes 30 Under 30 Europe list for Manufacturing & Industry.

http://voltfang.de