TotalEnergies has agreed to sell a 50% stake to Allianz Global Investors in a portfolio of 11 battery storage projects totalling 789MW in Germany.
TotalEnergies said the projects represent a total investment of €500 million, of which 70% will be financed by debt, and will be operational by 2028.
The company stated that the projects, with a combined capacity of 789MW – 1628MWh, are currently under construction and have been developed by Kyon Energy, a subsidiary of TotalEnergies, with most using next-generation batteries supplied by Saft, also a subsidiary of TotalEnergies.
TotalEnergies will remain operator of the assets, while the projects are located across Germany and are intended to reduce grid congestion and provide flexibility to support the growth of renewable energy.
Stéphane Michel, president gas, renewables & power at TotalEnergies, said: “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,”
Édouard Jozan, head of private markets at Allianz Global Investors, added: “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 789MW upon completion will help reinforce the country’s energy resilience, accelerate the energy transition, and deliver long-term value for our clients,”
The completion of the transaction is subject to customary approvals and conditions.