Terra One receives 150 million euros in mezzanine financing

The Berlin-based energy start-up Terra One has secured mezzanine financing of up to 150 million euros from the global asset manager Aviva Investors. The company intends to use the capital to accelerate the expansion of large-scale battery storage in Europe. The agreement will enable Terra One to invest up to 750 million euros in new projects and build a total capacity of around 3 GWh.

This financing package is a milestone for Terra One and the energy transition in Europe.

Tony Schumacher, founder and CEO of Terra One

Battery storage for grid stabilization

Terra One develops and operates large-scale battery storage systems to compensate for fluctuations in the electricity grid. In view of the increasing share of renewable energies such as wind and solar power, there is a growing need for flexible solutions to ensure security of supply and grid stability. According to the company, the planned capacity of 3 GWh is roughly equivalent to supplying 20 percent of all German households with electricity for one hour.

We are investing in Terra One because the company has shown that it can implement projects quickly, reliably and to the highest standards.

Adam Irwin, Director of Infrastructure Equity at Aviva Investors

According to Schumacher, the structure enables the company to grow flexibly and scalably and to expand its position as an independent storage developer. The investor also emphasizes the importance of the business model. The aim is to raise the European storage market to a new level.

Next steps and partners

Terra One intends to use the fresh financing to launch a series of ready-to-build projects. The transaction was accompanied by Elgar Middleton Infrastructure & Energy Finance LLP and the law firm Hogan Lovells. Thanks to the partnership with Aviva Investors, the startup believes it is well positioned to significantly advance the expansion of storage infrastructure in Europe.