Energy storage solutions provider Return has secured €835 million (~$930 million) in portfolio financing underwritten by Deutsche Bank and Rabobank to expand battery storage capacity for its Virtual Flexibility Portfolio in Germany.

The financing combines funding for physical battery storage assets with Return’s virtual flexibility portfolio. The company plans to use the financing to increase storage capacity available through the portfolio.

An initial 117 MW across three battery storage projects is under construction. Return said additional projects will be added to the financing facility in the near future and during 2027.

The company aims to install at least 1 GW of battery storage capacity annually in Germany from 2027. It plans annual investments ranging from €750 million (~$843 million) to €1.2 billion (~$1.3 billion), subject to market conditions.

Rabobank acted as financial adviser for the transaction. Hogan Lovells Cadwalader advised the borrowers, while White & Case served as legal adviser to the lenders. Baker McKenzie provided project due diligence, Baringa served as commercial adviser, and DNV acted as technical adviser.

EY and EY-Parthenon advised on tax structuring and financial and tax modeling, while Marsh advised on insurance.

“As demand for energy flexibility grows, we need to scale not just our battery storage capacity, but also the way we finance it. By bringing together physical infrastructure financing and our virtual flexibility model, we can expand more efficiently and respond to our customers’ evolving needs. This is an important step towards our ambition to become a leading independent provider of energy flexibility in Germany,” said Daniel Witvoet, CFO at Return.

Return’s Virtual Flexibility Portfolio combines capacity from multiple battery storage assets into a single virtual portfolio. According to the company, customers can access flexible capacity through a single interface and increase their access as requirements grow.

In the first nine months of 2026, publicly announced energy storage project funding increased by 197% year over year, compared to 9M 2025, according to Mercom’s recently released 9M 2026 Funding and M&A for Energy Storage report.

In October, Australian battery energy storage developer Akaysha Energy refinanced its existing project-level debt through a A$1.75 billion (~$1.2 billion) portfolio-level financing facility to support its battery storage development pipeline in Australia.