TotalEnergies has signed an agreement with Allianz Global Investors (AllianzGI) to jointly develop a portfolio of nearly 800 MW of battery energy storage (BESS) projects in Germany, marking a major expansion of grid-scale flexibility infrastructure in one of Europe’s largest power markets. The partnership involves the sale of a 50% stake in 11 battery storage projects currently under construction, representing a combined capacity of 789 MW/1,628 MWh and a total investment of about €500 million (US$583 million). The battery storage projects are expected to enter operation progressively by 2028.

The projects were originally developed by Kyon Energy, a battery storage developer acquired by TotalEnergies in 2024. They will primarily deploy advanced storage systems supplied by Saft. TotalEnergies will also retain operational responsibility for the facilities while AllianzGI enters as a strategic financial partner through its private markets platform.

The partnership is also a show of TotalEnergies’ integrated power strategy, which combines renewable generation, storage, and electricity trading to deliver flexible low-carbon power solutions across Europe.

Overview on TotalEnergies & Allianz partnership for 800 MW battery storage (BESS) portfolio across 11 projects in Germany

The battery portfolio consists of 11 large-scale storage projects located across Germany. And like other storage installations such as the largest BESS in Europe by Fluence and LEAG, they are designed to provide flexibility services such as grid balancing, congestion management, and renewable energy integration.

Germany’s energy transition has also increased the need for battery storage as wind and solar capacity grows rapidly. TotalEnergies’ new portfolio will help stabilize electricity supply by storing excess renewable power and releasing it during periods of high demand.

AllianzGI’s partnership also complements TotalEnergies’ broader energy platform in Germany, which includes renewable generation development, electricity trading via Quadra Energy, and expanding EV charging infrastructure nationwide.

Project factsheet

Location: Various sites throughout Germany

Power Capacity: 789 MW

Energy Storage Capacity: 1,628 MWh

Projects Status: Under construction

Operational Target: By 2028, subject to permitting and final approvals.

Number of Projects: 11 separate BESS facilities

Technology: Grid-scale lithium-ion battery systems

Transaction Value: €500 million (US$580 million) total investment to complete the projects through 2028.

Equity Split: 50% TotalEnergies, 50% AllianzGI

Debt Financing: Approximately 70% debt financing, with project lenders providing capital to support construction.

Revenue Streams: Expected to include grid balancing, ancillary services and frequency regulation. Additionally, participation in energy markets as flexible assets under Germany’s electricity market rules is another revenue faucet.

Importance: Aligns with Germany’s decarbonization agenda and TotalEnergies’ integrated power strategy in Europe’s largest electricity market.

Project financing

Total investment for the battery storage (BESS) projects portfolio is approximately €500 million, structured as a joint investment between TotalEnergies and Allianz. About 70% of the capital is expected to be financed through debt, with the remainder provided through equity from the two partners.

The transaction also enables TotalEnergies to recycle capital while continuing to operate the BESS installations. This aligns with its broader plan of partnering with infrastructure investors to scale its electricity portfolio.

For AllianzGI, the investment also represents its first direct equity participation in a battery storage portfolio. This expands its long-standing energy transition investment platform that already includes wind, solar, hydrogen, and electricity interconnection infrastructure projects.

Stakeholders and contractors behind TotalEnergies, AllianzGI partnership on 800 MW battery storage (BESS) portfolio across 11 projects in Germany

Those involved in the battery storage portfolio include:

• TotalEnergies as lead developer, co-owner, and operator of the projects
• AllianzGI as equity partner acquiring a 50% stake in the project portfolio
• Kyon Energy as original developer of the battery storage pipeline, now part of TotalEnergies
• Saft as supplier of advanced battery systems for the majority of projects