The Netherlands is set to build its largest battery energy storage system (BESS), a 1.4-gigawatt-hour (GWh) storage facility in the coastal city of Vlissingen. Dutch energy developer Lion Storage, backed by major international investors, has secured financial closure on the €350 million (C$519M/US$367M) project, named Project Mufasa.
The facility, expected to be operational by 2027, will be powered by 372 Tesla Megapack 2 XL battery systems. Tesla will not only supply the battery units but also oversee engineering, procurement, and construction (EPC) for the project.
Addressing Grid Challenges with Battery Storage
With the Netherlands ramping up its renewable energy ambitions—targeting 21 gigawatts (GW) of offshore wind capacity by 2032—balancing the power grid has become a growing challenge. Large-scale battery storage like Project Mufasa will play a crucial role in stabilizing electricity supply by absorbing excess power during times of high generation and discharging it when demand peaks.
Project Mufasa will have a discharge capacity of 350 megawatts (MW), enough to power approximately 200,000 homes multiple times per day.
Repurposing a Former Coal Plant Site
The battery storage system will be integrated into the high-voltage grid using the existing connection from a former coal-fired power plant, possibly the Sloe power station in Vlissingen.
Once completed, Project Mufasa will be operated by Eneco, the Dutch energy subsidiary of Japan’s Mitsubishi Corporation. Eneco, a long-time player in the Dutch renewable energy sector, will oversee the daily operations of the facility.
Investment & Financial Returns
The project’s financing structure is noteworthy, as it is the largest non-recourse funded BESS project in the Netherlands. Investment comes from a mix of global financial players, including Macquarie Capital, Belgium’s TINC, and Dutch infrastructure investor Return, as well as a consortium of six major banks. Santander Corporate & Investment Banking served as the financial advisor, while Greenberg Traurig provided legal counsel.
“This project is a game-changer for energy storage in the Netherlands,” said Arno Hendriks, co-founder of Lion Storage. “It proves that large-scale battery projects are not just technically viable, but also highly investable.” (via PV Magazine)
Tesla’s Growing Energy Storage Business
This is the latest in a series of Megapack project that helped Tesla deploy a record-breaking 31.4 GWh of battery storage in 2024, solidifying its role as a key supplier of grid-scale battery technology worldwide. With the increasing integration of renewables, Tesla’s Megapack solutions have been widely adopted across Europe, the U.S., Canada, and Australia for stabilizing electricity grids.
