Renewable sources now supply about 50% of the electricity in the Netherlands, but wind and solar supply too much energy to the grid at peak generation times, and too little at other times. Tackling grid congestion is therefore a key focus for Triodos Energy Transition Europe Fund. As renewable generation and electrification of demand proliferate, the stability of energy grids is a growing concern in many European countries. Unless addressed, the energy transition is at risk of smothering itself. Not only is the physical space for new wind and solar parks diminishing, on the demand side lack of grid capacity eats into or prevents economic activity. For the 14,000 Dutch companies waiting to electrify their core activities or wanting to establish themselves, lack of grid capacity stifles their growth or prevents their inception. In addition to vast investments in upgrading the grid, BESS have a crucial role to play in balancing out the supply and demand of renewable electricity.

Market leader in the Netherlands

GIGA Storage began deploying battery technology in 2018 and is one of the first movers in this market in the Netherlands.

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“Thanks to Triodos Investment Management and Rabobank for financing the 47MW of BESS projects. We are proud of driving the energy transition together.”

Animesh Ranjan, Chief Investment Officer GIGA Storage

Triodos Energy Transition Europe Fund’s relationship with Giga Storage dates back to 2020 with a loan for Giga Rhino, the first and first standalone BESS for the company in the Dutch market. The follow-up transaction materialised in November 2021 with an 80% equity stake and a loan (together with Coöperatieve Rabobank U.A.) for Giga Buffalo, the second BESS project for the company. Both Rhino and Buffalo are already operational and have a capacity of 9/12MW/MWh and 25/48MW/MWh, respectively. Giraffe is the latest addition to the pack, being the deepest asset to date with 4 hours. The three projects are consolidated in GIGA Zoo 1 B.V. (Zoo I). By leveraging a diverse range of battery depths, this enables GIGA to identify which revenue markets are most effective for specific asset profiles.

“With Giraffe completed, GIGA has a relevant combination of assets; these allow us to gain better understanding of which types of BESS work for which markets and under which circumstances.”

Kay van der Kooi, Senior Investment Manager at Triodos IM

Located in the port area of ​​Amsterdam where grid congestion is rife, presented unique challenges to the development of the Giraffe asset, which GIGA managed to navigate. Giraffe increases the electricity networks robustness by storing and balancing demand between the peaks and valleys of intermittent renewable energy generation. The battery’s depth allows it to charge or discharge for four hours, a very gradual profile, making it especially suitable for participating in the Dutch day-ahead and intraday electricity markets.

Strategic fit

Triodos Energy Transition Europe Fund provided a mezzanine loan to GIGA Zoo I, to finance the exploitation of the existing BESS and the construction of two new ones. "The investment builds upon a solid and successful partnership with GIGA after our previous investments in GIGA Rhino and GIGA Buffalo", explains Kay van der Kooi, Senior Investment Manager. "It also diversifies the fund’s portfolio from established wind and solar generation into the next important step in the energy transition, where we can add value and assume thought leadership by being a frontrunner."