TotalEnergies has agreed to sell a 50% interest in a portfolio of 11 battery storage projects in Germany to Allianz Global Investors (AllianzGI). The projects, developed by Kyon Energy—a TotalEnergies subsidiary—have a combined capacity of 789 MW and an energy storage potential of 1,628 MWh. All sites are scheduled to be operational by 2028.
The total investment for these developments is €500 million, with approximately 70% expected to be financed through debt. Saft, another TotalEnergies subsidiary and a recognized leader in high-tech battery systems, will supply next-generation lithium-ion batteries for the majority of the projects. TotalEnergies will continue to operate the assets once they come online.
By expanding its flexible power infrastructure, the partnership aims to bolster grid resilience across Germany. The battery projects are designed to ease network congestion and provide balancing services that support the increasing share of wind and solar generation in the country’s energy mix.
Germany represents a strategic market for TotalEnergies, which is active across the full electricity value chain, from renewable energy development to power trading and aggregation.
Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, said the transaction aligns with the company’s integrated power model and optimizes capital allocation in its low-carbon activities. Édouard Jozan, Head of Private Markets at Allianz Global Investors, noted that this marks Allianz’s first direct equity commitment to a battery storage portfolio, reinforcing the company’s long-standing focus on sustainable infrastructure investments.
The transaction remains subject to customary regulatory approvals and closing conditions. Once finalized, it will represent one of the largest single investments in battery storage development in Germany to date, further supporting the country’s transition to a flexible, low-carbon power system.
Source: Business Wire
