Aviva Investors has announced a strategic investment of up to €150 million ($178m) in the European battery energy storage system (BESS) sector, partnering with German developer-operator Terra One Climate Solutions.
The initial €75 million ($89m) tranche will be deployed alongside €15 million ($18m) from Terra One to support the build-out of approximately 500MW of BESS capacity in Germany, targeted for commissioning by 2028. The agreement includes scope for Aviva Investors to increase its investment to €150 million, backing Terra One’s pipeline of late-stage development assets.
As part of the transaction, Aviva Investors will take an equity stake in Terra One and appoint two representatives to the company’s board.
Founded in 2021 and headquartered in Berlin, Terra One develops and operates battery storage systems across Europe. The company is also advancing AI-driven control models aimed at grid stabilisation and cost reduction for end users, with a focus on integrating renewables more reliably into the energy mix.
Terra One’s current pipeline spans 5.8GW across the full BESS lifecycle – from early-stage development to in-house operation.
“We are pleased to have completed this platform investment in Terra One, a company which has benefitted from first-mover advantage in one of Europe’s largest power markets,” said Angenika Kunne, head of infrastructure equity at Aviva Investors “Energy storage in Germany is at a fast-growing and dynamic stage of its development, making it an exciting place to invest whilst capturing growth and returns. This is another example of how Aviva Investors is investing in new technologies that can help whole industries get ready for the future.”
