Global alternative investment manager Apollo and German power producer RWE announced today the launch of a new joint venture, which will see Apollo committing €3.2 billion (USD$3.8 billion) to fund investments in expanding the transmission grid in Germany.
The new JV, to be operationally controlled by RWE, will hold and fund RWE’s 25.1% stake in Amprion, one of Germany’s four Transmission System Operators (TSO), which operates the transmission grid across seven German federal states, serving approximately 29 million people.
According to RWE and Apollo, the new JV comes as Amprion is set to undertake a major investment program for grid expansion over the next decade to enhance critical energy infrastructure essential to facilitating the energy transition in Germany.
RWE said that the new partnership aligns with its strategy to grow its generation portfolio of renewables, batteries, and flexible generation assets and to focus on its core activities of power generation and energy trading.
The new JV marks the latest in a series of large-scale energy transition-focused investments by Apollo, including the launch earlier this year by the firm of a $3 billion strategic partnership with UK-based banking group Standard Chartered, focused on accelerating financing for infrastructure, clean transition and renewable energy.
Apollo Partner Jamshid Ehsani said:
“This partnership with RWE will help fund long-term capex for critical grid expansion in Germany to power homes and industry, and it underscores our focus on delivering tailored capital solutions to leading global companies and essential infrastructure. It also reflects Apollo’s commitment to strong, lasting partnerships across both the private and public sectors. Looking ahead, we expect to further accelerate our investment activity in Europe, with a particular focus on Germany, France, Italy and the UK.”
