As part of its growth in electricity in Germany, TotalEnergies has signed an agreement with Allianz Global Investors (AllianzGI) for the sale of a 50% stake in a portfolio of 11 battery storage projects with a total capacity of 789 MW/1628 MWh. With this agreement, the partners will deliver an investment of €500 million in critical energy infrastructure for Germany, of which 70% will be financed by the debt.
These 11 projects, located across Germany, have been developed by Kyon Energy, a subsidiary of TotalEnergies, and will all be operational by 2028. Most of them will use next generation batteries supplied by Saft, a subsidiary of TotalEnergies and a global leader in high tech batteries. TotalEnergies will remain the operator of the assets.
With these projects, TotalEnergies and Allianz will directly contribute to the resilience of the German power system by reducing grid congestion and providing the flexibility needed to support the rapid growth of renewable energies in the country.
Germany is a key market where the Company is present across the entire power value chain: the development of renewable generation projects (wind, solar), flexible assets (battery storage), as well as trading and aggregation enabling the supply of low carbon electricity available 24/7.
“We are delighted to welcome Allianz, a first-class partner in Germany, as a shareholder in 11 of our battery storage projects, representing a total capacity of nearly 800 MW. In line with our business model, this transaction enables us to optimise our capital allocation in our integrated power activities and helps improve the sector’s profitability. This operation, strengthen our development momentum in Germany, Europe’s largest power market, where we are deploying our clean firm power strategy, as illustrated by the 200 MW PPA signed with Airbus recently,” said Stéphane Michel, President Gas, Renewables & Power at TotalEnergies.
“The shift to cleaner energy depends on strong infrastructure. This investment marks Allianz’s first direct equity commitment to a portfolio of battery storage projects. As a pioneer in energy transition investing for more than 20 years with a portfolio spanning wind and solar farms, green hydrogen platforms, and an electricity interconnector, we are very delighted to partner with Total Energies on this important project in one of our home markets, Germany. These eleven projects across Germany with a capacity of 789 MW upon completion will help reinforce the country’s energy resilience, accelerate the energy transition, and deliver long-term value for our clients,” commented Édouard Jozan, Head of Private Markets at Allianz Global Investors.
The completion of the transaction is subject to customary approvals and condi-tions.
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