TotalEnergies has agreed to sell a 50% stake in a portfolio of 11 battery storage projects in Germany to Allianz Global Investors, the companies said.
The portfolio totals 789MW/1,628MWh and represents a combined investment of around €500 million, with approximately 70% to be financed through debt. The projects are expected to become operational by 2028.
TotalEnergies said the assets are currently under construction and were developed by Kyon Energy, its subsidiary in Germany. Most of the facilities will use next-generation batteries supplied by Saft, which is also part of the TotalEnergies group.
The French energy major will remain operator of the assets. Located across Germany, the projects are designed to ease grid congestion and provide flexibility to support the expansion of renewable energy.
Stéphane Michel, president of gas, renewables and 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.”
He added that the deal strengthens the company’s development 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, said the transaction marked the firm’s first direct equity investment in a battery storage portfolio.
“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,” he said, adding that the 11 projects “will help reinforce the country’s energy resilience, accelerate the energy transition, and deliver long-term value for our clients.”
Completion of the transaction remains subject to customary approvals and conditions.
