TotalEnergies has agreed to sell a 50 percent stake in a large battery storage portfolio in Germany to Allianz Global Investors (AllianzGI), marking a major investment in energy storage infrastructure in Europe’s largest electricity market.

The portfolio includes 11 battery storage projects developed by TotalEnergies’ subsidiary Kyon Energy, with a combined capacity of approximately 789 megawatts and 1,628 megawatt-hours. The projects are located across Germany and are expected to become operational by 2028.

Together, the partners plan to invest about €500 million in the portfolio, with roughly 70 percent of the financing expected to come from debt.

 

Infrastructure To Support Grid Stability

 

Once completed, the battery projects will play a key role in improving the flexibility and resilience of Germany’s electricity system. Large-scale storage helps manage the intermittency of renewable energy sources such as wind and solar by storing excess electricity and releasing it during periods of high demand.

Many of the projects will use next-generation battery technology supplied by Saft, which is also a subsidiary of TotalEnergies. TotalEnergies will continue to operate the assets after the transaction.

Energy storage infrastructure has become increasingly important in Germany as the country expands renewable energy generation while addressing grid congestion challenges.

 

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Part Of TotalEnergies’ Integrated Power Strategy

 

The sale aligns with TotalEnergies’ Integrated Power strategy, which combines renewable generation with flexible power assets such as battery storage and gas-fired generation to deliver reliable, low-carbon electricity.

Under this model, TotalEnergies often sells up to 50 percent of renewable or flexible assets once they reach commercial maturity. The approach allows the company to recycle capital into new projects while maintaining operational control and long-term participation in the assets.

Stéphane Michel, President of Gas, Renewables and Power at TotalEnergies, said the transaction supports capital optimization within the company’s integrated power activities while strengthening its development momentum in Germany.

TotalEnergies has set a goal of reaching 100 gigawatts of installed renewable capacity globally by 2030, with Germany identified as a key market for expansion.

 

First Battery Portfolio Investment For AllianzGI

 

For Allianz Global Investors, the deal represents its first direct equity investment in a battery storage portfolio. The firm manages approximately €591 billion in assets globally and has been active in energy transition investments for more than two decades, including wind and solar projects, green hydrogen platforms and electricity interconnectors.

Édouard Jozan, Head of Private Markets at AllianzGI, highlighted the importance of storage infrastructure in supporting Europe’s transition toward cleaner energy systems.

The partnership reflects growing institutional interest in energy storage assets, which provide stable revenue opportunities while enabling higher penetration of renewable energy in electricity grids.

 

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Storage As A Core Energy Transition Asset

 

Large-scale battery projects are increasingly viewed as essential infrastructure in modern power systems. By reducing grid congestion and balancing fluctuations in renewable generation, storage assets enable power systems to operate reliably as renewable capacity expands.

In Germany, where renewable deployment is accelerating but grid constraints remain a challenge, battery storage is expected to play a critical role in maintaining system stability while supporting the country’s long-term decarbonisation goals.