Flexibility Purchase Agreements: The New Golden Standard for Bankability

2025 was a record year for Flexibility Purchase Agreements (FPAs). As German BESS projects scale without subsidies, fixed-price FPAs are emerging as a key tool to secure revenues and unlock debt. But are they truly the “new PPA,” and how should risk be allocated between asset owners and offtakers?

• Does the German market already exhibit clarity and standardisation for flexibility offtake contracting?
• Which offtake models are most prevalent in the German market and why?
• Do all fixed revenue offtakes carry equal value from a lender perspective?
• How are tolling arrangements pricing in longer duration and higher level of grid constraints?
• How can flexibility offtake agreements evolve to further unlock leverage for German assets