TotalEnergies has signed an agreement with Allianz Global Investors for the sale of a 50% stake in a portfolio of 11 battery storage projects currently under construction in Germany, representing a total investment of €500 million.
The portfolio will deliver a combined capacity of 789 MW and 1,628 MWh, forming a major grid-scale storage platform designed to support the country’s expanding renewable energy system. The partners expect the projects to be fully operational by 2028, with around 70% of the capital structure financed through debt.
The battery storage projects were developed by Kyon Energy, a TotalEnergies subsidiary, and will be deployed across multiple locations in Germany. Most of the projects will utilize next-generation batteries supplied by Saft, another subsidiary of TotalEnergies specializing in advanced battery technologies. TotalEnergies will remain the operator of the assets following the transaction.
The investment reflects a broader push to build flexible energy infrastructure capable of balancing intermittent renewable generation. Battery storage systems can help reduce grid congestion and provide the flexibility required as Germany rapidly expands wind and solar capacity.
For TotalEnergies, the partnership supports its integrated power strategy and enables the company to recycle capital while continuing to expand its electricity platform in Europe’s largest power market. Germany remains a key focus for the company’s electricity strategy, where it is developing renewable generation, storage capacity and power trading capabilities.
Allianz Global Investors said the deal represents its first direct equity investment in a portfolio of battery storage projects, strengthening its exposure to infrastructure supporting the energy transition.
The completion of the transaction remains subject to customary approvals and conditions.
KEY QUOTES
“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.”
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
