Alllianz Global Investors (AllianzGI) announced today it has signed an agreement with French energy giant TotalEnergies for the sale of a 50% stake in a portfolio of 11 Battery Energy Storage System (BESS) projects currently under construction in Germany.
Energy storage forms one of the key building blocks for the clean energy transition, given the intermittent generating nature of many sources of renewable energy, such as wind and solar, and the need to satisfy round-the-clock energy demand, while ensuring that energy is not wasted, particularly as demand on the grid grows from areas such as transport electrification and AI computing.
Under the new joint venture partnership, the companies said that they will work together to finance, construct and operate assets that will provide important flexibility to the German power market and electricity network.
The transaction marks Allianz’s first direct equity investment in a portfolio of BESS projects.
Édourad Jozan, Head of Private Markets at Allianz Global Investors said:
“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.
The BESS portfolio is expected to be operational by 2028, with a total capacity of 789 MW, and to represent a total investment of approximately €500 million (USD$580 million).
The projects have been developed by battery storage developer Kyon Energy, which TotalEnergies acquired in 2024.
Stéphane Michel, President Gas, Renewables & Power at TotalEnergies, said:
“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.”
