Abu Dhabi Future Energy Company ( Masdar ) and German global energy corporation RWE have signed a memorandum of understanding to support the expansion of renewables in Germany and Europe and advance energy transformation on the continent.

The agreement was signed during a recent visit by German Chancellor Friedrich Merz to the United Arab Emirates. 

Under the MoU, Masdar and RWE will work together to identify and pursue investments in battery energy storage system ( BESS ) projects in Germany. Masdar will explore investing in existing BESS projects in the country owned by RWE by 2030, with a capacity of up to 1 gigawatt. 

In addition, RWE and Masdar will assess the joint development of new BESS projects of up to 1GW by 2035. The development of battery storage systems will support the expansion of renewable energy by balancing intermittent supply, therefore ensuring a stable, affordable, and secure power supply in Germany. This will also help to meet the growing demand for reliable power from new data centres.

“Battery storage is critical to unlocking renewable energy deployment and delivering clean, reliable, and affordable electricity for the benefit of consumers, businesses, and communities,” notes Masdar chief executive officer Mohamed Jameel Al Ramahi. “Germany is an important market for Masdar as we progress towards our target of 100 gigawatts of capacity worldwide by 2030, and we look forward to building on our already powerful partnership with RWE to support energy transformation in Germany and across Europe.”

“The MoU with Masdar reflects the importance RWE and Masdar place on flexible energy storage as a foundation for grid stability, security of supply, and the integration of renewable energy – core pillars of Germany’s climate neutrality and energy policy objectives,” adds RWE chief executive Markus Krebber. “Our collaboration is underpinned by a strong track record, most recently demonstrated by our joint success in the latest UK offshore wind auction for the Dogger Bank South ( DBS ) projects.”

RWE's partnership with Masdar began in 2008 with their co-investment in the London Array offshore wind farm. Last month, the companies were awarded contracts for difference ( CfDs ), the UK government’s primary mechanism for enabling the deployment of low-carbon electricity at scale, for the DBS offshore wind farms. Representing an investment of £11 billion ( US$15 billion ), DBS comprises two 1.5GW projects, DBS East and DBS West, together forming one of the UK’s largest offshore wind projects currently under development.