Allianz Global Investors (AllianzGI) has announced that it has signed on behalf of Allianz insurance companies and the Allianz European Infrastructure Fund II an agreement for the acquisition of a 50% stake in a portfolio of 11 battery storage projects from TotalEnergies with a total capacity of 789 MW - 1628 MWh. With this agreement the partners will deliver an investment of EUR 500 million in critical energy infrastructure for Germany, of which 70% will be financed by the debt.
These 11 projects, located across Germany, have been developed by Kyon Energy, a subsidiary of TotalEnergies and leading German Battery Storage Developer, and will all be operational by 2028. TotalEnergies will remain the operator of the assets.
With these projects, Allianz and TotalEnergies will directly contribute to the resilience of the German power system by reducing grid congestion and providing the flexibility needed to support the rapid growth of renewable energies in the country.
"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 800MW. 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, will help us strengthen our development momentum in Germany, Europe´s largest power market, where we are deploying our clean firm power strategy, as illustrated by the 200MW PPA signed with Airbus recently," said 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 nearly 800MW upon completion will help reinforce the country’s energy resilience, accelerate the energy transition, and deliver long-term value for our clients," commented Édouard Jozan, Head of Private Markets at Allianz Global Investors.
The completion of the transaction is subject to customary approvals and conditions.
