The Pexapark Podcast Merchant Value & Volatility: Decoding BESS Bankability with Niels Jakeman of NORD/LB
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Jan 29, 2026 Niels Jakeman, Head of Energy Origination Europe at NORD/LB with decades in renewables and ~30 GWh of storage financed, shares a lender’s view on battery bankability. He covers what lenders want for storage projects. He explores merchant risk, tolling versus optimization structures, hybrid portfolios, and how France’s shifting power regime reshapes long-term offtake dynamics.
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NordLB's Storage And Renewables Track Record
- Niels described NordLB's track record: about 30 GWh of storage and over 90 GW of renewables financed globally.
- He said Europe accounted for ~12 GW financed last year across 12 countries, showing rapid growth in lending activity.
Evolution From FiTs To Merchant Complexity
- Renewable financing evolved from feed-in tariffs to PPAs and then to partial and portfolio contracting, shifting merchant risk to sponsors.
- Lenders now balance enabling sponsor returns with protecting downside, leading to creative deal structures and later PPA timings.
Prefer Tolls And Floors For Bankability
- For BESS, lenders prefer tolling agreements or floors plus optimization hedges to limit merchant exposure.
- Structure deals with clear offtake credit, capacity revenue where available, and defined hedges to make projects bankable.