Post by Luca Pedretti

Now even Green BESS starts to work A transaction insight from the Pexapark Munich Customer Briefing. In the German market, "Green BESS" denotes a co-located battery that is technically or contractually restricted to charging exclusively from its co-located renewable source, a solar PV array or wind farm. It is legally prohibited from drawing charging power from the grid. The counterpart without such restriction is the"Grey BESS." Without grid access, a Green BESS forgoes a (very) significant part of the revenue available to a standalone battery, which has historically made the business case unfavorable. The cost trajectory has shifted the economics. Installed BESS cost stood at €107/kWh in 2025 and is forecast at approximately €73/kWh by 2028. BNEF's 2025 ESS cost survey places global energy storage system costs near €100/kWh, falling toward €80/kWh by 2028. The supply market has expanded over the past 18 months, with 12 to 15 Tier 1 suppliers now active in Europe. Solar PV LCOE sits at €39/MWh and is expected to fall below €30/MWh. In the past, the green premium alone was insufficient to offset the foregone revenue. On the back of improved capex, shaped PPA structures are now making Green BESS cases viable. Also fair to say that in many situations the structure is the only option given overly restrictive grid connection agreement or the absence of approval for a new connection. Purely from an economics point of view (and I would argue systems point of view), I think the focus should be on enabling "grey" BESS but that is another topic... Interstingly as well, for the parties at the table though, the headline number is not where the work sits. As Jens Hollstein, Executive VP Advisory, noted: "In every mandate, 80% of negotiation time was spent on risk clauses, not the price." Source: Pexapark Analysis. Cost data: BloombergNEF (BNEF) 2025; IRENA Renewable Power Generation Costs; Ember Energy 2025; HighJoule 2026; Energy-Storage.News.