Eurazeo joins Norrsken VC, Creandum in €192m battery storage bet: 'A fundamental need'

French private equity firm Eurazeo has led a €192m investment into German energy storage company Terralayr, as growth capital starts to play an outsized in the booming grid tech market.

Existing VC backers including Norrsken VC, Creandum, Earlybird Venture Capital, Picus Capital, and RIVE Private Investment also joined the round.

Combined, the investors will make an initial €112m commitment, with an additional €80m potentially following if the projects go as planned.

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.

Terralayr has 150 MW of capacity in operation or under construction in Germany, with another 200 MW in the pipeline.

Eurazeo said the investment would support Terralayr’s next phase of growth, as the company plans to install 1GW of installed battery systems within the next 36 months.

“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 its €706m Eurazeo Transition Infrastructure Fund (ETIF).

Eurozeo previous energy investments include climate tech unicorn 1Komma5°, whose CEO Phillip Schröder is very picky about who he takes money from. Other companies in Eurozeo's portfolio includes ESG reporting unicorn EcoVadis and Paris-based EV charging firm Electra.

The Terralayr 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.