AllianzGI acquires a 51% stake in German battery storage platform GESI

Allianz Global Investors (AllianzGI) announced that it has acquired a 51 percent stake in battery storage platform Green Energy Storage Initiative (GESI) on behalf of Allianz insurance companies. The German company develops, constructs and operates high-performance, digitalised large utility-scale battery storage systems to provide flexibility within the energy system.

GESI is currently developing three large-scale battery storage projects across Bavaria and Lower Saxony, with an aggregate grid connection capacity of around 2.6 GW. The projects rank among the largest battery storage developments in Germany and are located at strategically critical nodes of the transmission network. They benefit from the continued use of existing grid infrastructure, including former large power plant sites that have been decommissioned. Commissioning of the projects is scheduled by 2029. Furthermore, GESI has an attractive project pipeline.

Through this investment, Allianz further expands its exposure to the large-scale battery storage sector and reinforces its role in scaling system-critical infrastructure that enhances the stability and resilience of the energy system. Battery storage is a cornerstone of the energy transition, providing short-term flexibility, alleviating grid congestion, and enabling the efficient integration of renewable energy generation into the power system.

“Modern storage solutions are a key component of an efficient and stable energy infrastructure. Demand for battery storage is therefore high and growing rapidly. This investment in GESI is already our second direct equity investment in battery storage in Germany, alongside the partnership with TotalEnergies that we announced at the beginning of March. We are delighted to be working with the established and highly experienced management team and the shareholders of GESI to further drive the development of large-scale battery storage in Germany,” says Ludovic Subran, Chief Investment Officer, Allianz Group.

“Germany is Europe’s largest electricity market. Following our recently announced investment in the electricity transmission system operator Amprion, we are now making with this second investment in battery storage once again a targeted investment in a key technology of the energy transition that combines security of supply, grid stability and decarbonisation, and offers our customers long-term value creation potential,” says Édouard Jozan, Head of Private Markets, Allianz Global Investors.

“For a successful and affordable energy transition, Germany urgently needs additional storage capacity,” says GESI CEO Walter Raizner. “With Allianz as an experienced and renowned partner, we are now ideally positioned to make a significant contribution to the transformation of the German energy system- in the interests of climate protection and an independent, sustainable energy supply”.

“Currently, green electricity worth billions of euros is lost every year because wind and solar power plants have to be curtailed or shut down,”says GESI COO Jens Michael Wegmann. “Allianz’s commitment demonstrates that energy storage is a key lever for better utilising the potential of renewables, reducing system costs, increasing security of supply and thereby improving the overall economic efficiency of the energy system.”