French energy company TotalEnergies has unveiled a strategic agreement to acquire Quadra Energy, a notable player in the aggregation of renewable power production in Germany. This deal is set to enhance TotalEnergies' foothold in the German electricity market, pending regulatory approval.
Quadra Energy effectively manages a virtual power plant boasting an impressive 9 gigawatts (GW) capacity. In the year 2022 alone, the company procured energy from approximately 5,000 wind and solar power facilities, redistributing 14 terawatt-hours (TWh) on wholesale markets, in addition to selling energy to German resellers and customers.
Significantly, since 2021, Quadra Energy has also been cultivating a portfolio of medium-term contracts, involving the procurement of 2 TWh of renewable energy, which are then marketed through corporate power purchase agreements (PPAs). The company, with a team of 40 employees, notably utilizes an innovative weather forecasting platform.
TotalEnergies views this acquisition as a catalyst for advancing its Integrated Power activities within Germany. The company aims to tap into the attractive dynamics of the German electricity market, focusing on aspects spanning power production, trading, aggregation, and the promotion of corporate PPAs and clean firm power.
Stephane Michel, President of Gas, Renewables & Power at TotalEnergies, emphasized the potential benefits of this agreement, stating, “This agreement will enable us to speed up the development of our Integrated Power activities in the country – whose electricity market has particularly attractive fundamentals – in both production, trading, aggregation, and marketing of corporate PPA and clean firm power.”
Furthermore, TotalEnergies anticipates that Quadra Energy's expertise and local network of renewable developers will be instrumental in enhancing the company's renewable generation capacity in Germany. This development follows TotalEnergies' successful bid in July for a substantial 3 GW offshore wind concession in the region.
TotalEnergies' strategic move aligns with the broader global trend of energy companies actively seeking to bolster their presence in renewable energy markets, as they navigate the transition toward cleaner and more sustainable energy solutions.