By Ejekwu Chidiebere
- TotalEnergies is selling to Allianz 50% of its stake in 11 battery storage projects currently under construction in Germany.
- These 11 projects, representing a total investment of €500 million, will be operational by 2028.
Energy Window International (Media) – TotalEnergies says it 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 as part of its growth strategy in electricity in Germany, The partners, with this agreement, will deliver an investment of €500 million in critical energy infrastructure for the country, 70% which from the sum total which will be financed by the debt.
The 11 projects which are located across Germany, and have been developed by Kyon Energy, described as a subsidiary of TotalEnergies, are expected to be operational by 2028, according to an email statement, which also added that most of them would use next‑generation batteries supplied by Saft, also a subsidiary of TotalEnergies and a global leader in high‑tech batteries. TotalEnergies will remain the operator of the assets.
The French energy firm and Allianz according to the statement will and directly contribute to the resilience of the German power system through the reduction of grid congestion while providing the flexibility needed to support the rapid growth of renewable energies in the country.
TotalEnergies said Germany is a key market where the Company is present across the entire power value chain, including 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 optimize 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,” says 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,” Édouard Jozan, Head of Private Markets at Allianz Global Investors also commented.
However the completion of the transaction is still a subject of customary approvals and conditions.