Eurazeo invests €192m in Terralayr for grid-scale battery storage: 'A fundamental need'

Eurazeo has led a €192m equity financing round into German energy storage company Terralayr, as Europe’s largest power market races to secure its electricity system amid growing demand and volatile renewable supply.

The investment was the last of Eurazeo’s €706m Transition Infrastructure Fund (ETIF), and includes an €80m upsizing option.

Eurazeo now joins a group of existing backers including Creandum, Earlybird Venture Capital, Norrsken VC, Picus Capital and RIVE Private Investment, which invested €62m in Terralayr in 2024.

The funding will be used to expand Terralayr’s portfolio of grid-scale battery projects in Germany and to scale its LAYR software platform.

Virtual marketplace for green energy

Put simply, Terralayr builds and runs battery storage projects. Its LAYR platform acts as a digital control layer, allowing battery systems to be monitored, optimised, and the energy they store to be traded in real time.

Eurazeo said the investment would support Terralayr’s next phase of growth by accelerating both asset deployment and the development of its digital platform, helping stabilise and future-proof the power system.

“Terralayr develops and manages infrastructure that addresses a fundamental need for flexibility and stability in the power grid,” said Melissa Cohen, co-head of infrastructure at Eurazeo. “We believe Terralayr is well positioned to contribute to Germany’s energy transition.”

Final investment

For Eurazeo, the deal marks the ninth and final investment of ETIF, whose portfolio spans includes solar power companyTSE and Paris-based EV charging firm Electra.

Terralayr CEO Philipp Man said the funding would allow the company to “accelerate the build-out of much needed flexibility infrastructure in Germany” and strengthen its role with utilities, asset owners, and power traders.

The deal comes as battery storage is fast becoming a critical pillar of Europe’s energy transition. With renewables supplying a growing share of electricity, grid operators are increasingly reliant on storage to balance fluctuations, avoid blackouts, and reduce dependence on fossil-fuel backup power.

Analysts forecast the market for grid-scale storage in Europe to swell five-fold by 2030.