Sweden’s Vattenfall and Zug’s Terralayr sign multi-asset tolling deal: Here’s why it’s huge for the battery storage world

Zug-based terralayr, a provider of energy flexibility services, in collaboration with Vattenfall, a Stockholm-based energy company, has signed a 7-year, multi-asset tolling agreement.

Vattenfall is a European energy company employing around 21,000 people.

For more than 100 years, it has powered industries, delivered energy to homes, and enhanced living standards through innovation and teamwork.

Multi-asset tolling agreement.

This new model moves away from traditional tolling agreements that focus on one large storage facility.

Instead, it combines 55 MW of power from eight distributed battery sites across Germany, making a total of over 100 MW.

Terralayr builds, finances, and operates these systems, which are then connected through its cloud-based flexibility platform.

The partnership introduces a scalable, bankable revenue model that sidesteps traditional capital expenditure and the physical limitations of standalone systems.

Under the tolling arrangement, Vattenfall effectively “rents” this capacity from Terralayr at a fixed price, without taking ownership of the hardware.

According to the Swiss company, it opens the door for smaller battery storage systems to participate in large-scale energy contracts—something that conventional models often excluded.

“By aggregating many smaller storage systems into one virtual asset, we make flexible capacity available exactly when and where it’s needed — delivering higher reliability than a single large-scale physical battery and none of the overhead. Our flexibility platform can do this at scale, across asset types and geographies,” says terralayr.

The agreement has several advantages, including:

• No single point of failure
• No upfront Capex for off-taker
• Balance sheet light forthe  off-taker
• All revenue streams are available
• Scalable and bankable

“Due to its decentralised nature, Terralayr’s battery storage network can be ideally integrated into our automated trading processes,” says Honey Duan, director of commodity origination at Vattenfall.

“In this way, we reduce the cost of imbalances in our portfolio and can provide flexibility whenever it brings the greatest benefit to the electricity market,” adds Duan.

Terralayr remains responsible for the full lifecycle of the systems, from development to daily operations, while its software platform acts as the connective tissue, turning dispersed batteries into a unified, responsive energy resource.

“This isn’t just a deal—it’s a commercial innovation that sets a new standard for long-term revenue models in Battery Energy Storage Systems (BESS), including for smaller distributed BESS assets,” says Creandum.

Terralayr: Energy flexibility provider

Based out of Zug, Terralayr is an energy flexibility provider that offers on-demand services.

The company aggregates its own and third-party battery storage assets using a cloud-based platform, allowing customers like power producers, traders, grid operators, and energy-intensive businesses to access energy flexibility without having to own or manage the assets themselves.

Asset owners can connect with high-quality, flexible buyers and optimise their revenue sources.

Terralayr also develops and operates its battery storage projects, with active sites in Germany and a growing pipeline for future development.