In a landmark move to strengthen Germany’s energy infrastructure, global investment powerhouse Apollo has committed $3.8 billion to a new joint venture with RWE, one of the country’s largest power producers. The deal is designed to accelerate critical upgrades to Germany’s electricity transmission grid, a key enabler of the nation’s clean energy transition.

Backing the Backbone of the Energy Transition

The joint venture will specifically support RWE’s 25.1 percent stake in Amprion, one of Germany’s four official Transmission System Operators. Amprion’s grid spans seven federal states and serves nearly 29 million people. Over the coming decade, the company is expected to spearhead one of the most ambitious grid expansion programmes in Europe, designed to accommodate rising renewable generation, battery storage, and electrification across sectors.

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With Apollo’s infusion of €3.2 billion, the new joint venture will be positioned to co-fund Amprion’s extensive capital expenditure plans. This includes the construction of new transmission corridors, modernisation of existing infrastructure, and integration of flexible technologies to balance variable renewable energy supply.

RWE Doubles Down on Core Strategy

For RWE, the transaction is more than a financial alliance. It is a strategic move that allows the utility to retain operational control while freeing up capital to invest in its growing portfolio of renewable generation, energy storage systems, and flexible power assets.

The company reiterated that its long-term focus remains firmly on low-carbon generation and power trading. By entering into this new partnership, RWE is able to secure reliable financing for critical infrastructure without diverting from its clean energy goals.

A Broader Investment Vision from Apollo

Apollo’s investment in Amprion is part of a broader pattern. Earlier this year, the firm entered a $3 billion strategic partnership with UK-based Standard Chartered to finance sustainable infrastructure and clean energy projects across Asia, Africa, and the Middle East. That collaboration aimed to unlock financing for projects that often fall outside the remit of traditional investors due to perceived risks or lack of scale.

With the RWE venture, Apollo is now signalling a stronger commitment to Europe, particularly in core markets like Germany, France, Italy, and the United Kingdom. The firm sees long-term grid development as both a critical need and a lucrative opportunity, especially as governments seek to decarbonise their power systems while ensuring resilience and affordability.

A Statement of Long-Term Confidence

Speaking on the announcement, Apollo partner Jamshid Ehsani noted that the deal illustrates the firm’s approach to providing custom capital solutions to essential infrastructure projects. He emphasised that the company is focused on building durable partnerships across the public and private sectors, with a shared goal of supporting long-term, sustainable growth.

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By investing in grid expansion, Apollo is not only backing one of Europe’s most vital infrastructure assets, it is also placing a long-term bet on the success of the continent’s energy transformation. As electrification accelerates across transport, industry, and buildings, the role of robust transmission infrastructure becomes even more indispensable.

Europe’s Grid Is the Next Frontier

The Apollo–RWE partnership reflects a growing recognition that without a modernised grid, Europe’s climate ambitions will remain out of reach. While renewable energy deployment has surged, transmission capacity has not kept pace, leading to growing bottlenecks and curtailment risks.

Germany, in particular, faces the challenge of transporting clean power from its wind-rich north to industrial centres in the south and west. This geographic mismatch, coupled with plans to phase out coal and nuclear power, has placed enormous pressure on grid operators to invest quickly and wisely.

With its financial weight and operational experience, the new joint venture could serve as a model for future public-private collaborations aimed at building the next generation of grid infrastructure in Europe.

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