AllianzGI secures stake in TotalEnergies’ €500 million German battery storage portfolio

TotalEnergies has agreed to sell a 50% stake in its 789 MW German battery storage portfolio to Allianz Global Investors, enabling a joint €500 million infrastructure investment aimed at supporting renewable integration in Germany by 2028.

TotalEnergies, a French multi-energy major increasingly focused on the power value chain and renewable generation, has finalized an accord to divest a 50% equity stake in its German battery storage assets to Allianz Global Investors (AllianzGI). The portfolio, developed by TotalEnergies’ subsidiary Kyon Energy, comprises 11 projects with a combined capacity of 789 MW. The agreement facilitates a total capital infusion of €500 million into critical German energy infrastructure, with 70% of the funding anticipated to be secured through debt financing.

TotalEnergies will maintain operational control over the assets, many of which will utilize technology from Saft, its high-tech battery unit. For AllianzGI, a global active asset manager, this transaction represents its inaugural direct equity investment in a battery energy storage system (BESS) portfolio.

This development is highly significant for the German energy market, currently the largest in Europe. By deploying nearly 800 MW of flexible storage capacity, the partners are directly addressing the essential need to enhance grid resilience and manage congestion as the country accelerates its renewable energy expansion. The full portfolio is slated to be operational by 2028. From a strategic perspective, the partnership enables TotalEnergies to recycle capital and enhance the profitability of its integrated power division, while providing AllianzGI with access to long-term transition assets in a core domestic market. The closure of the transaction remains subject to customary regulatory conditions and approvals.