TotalEnergies sells 50% stake in 1.6 GWh German battery portfolio to AllianzGI
Allianz Global Investors (AllianzGI) has acquired a 50% stake in a portfolio of 11 battery energy storage projects under construction in Germany from TotalEnergies, marking its first direct equity investment of this kind.
The portfolio has a cumulative power output of 789 MW and a storage capacity of 1,628 MWh. It represents an estimated €500 million ($581 million) investment, with approximately 70% financed through debt.
On behalf of Allianz insurance companies and the Allianz European Infrastructure Fund II, Allianz GI says it has entered the joint venture partnership with TotalEnergies to finance, construct and operate assets that will provide important flexibility to the German power market and electricity network.
“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,” said Édouard Jozan, head of private markets at AllianzGI.
These 11 projects, located across Germany, have been developed by Kyon Energy, a German battery storage developer acquired by TotalEnergies in January 2024. The project are expected to go live by 2028. Most of them will use batteries supplied by French manufacturer Saft, a subsidiary of TotalEnergies. TotalEnergies will remain the operator of the assets.
“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,” said Stéphane Michel, president gas, renewables & power at TotalEnergies.
The completion of the transaction is subject to customary approvals and conditions.
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