Allianz Global Investors has agreed to acquire a 50% stake in a portfolio of 11 battery storage projects from TotalEnergies, committing to a total investment of €500m, equivalent to approximately $550m.

The projects, with combined capacity of 789MW / 1,628MWh, are under construction across Germany and are expected to become operational by 2028. Around 70% of the capital structure will be financed through debt.

The transaction marks AllianzGI’s first direct equity investment in a utility-scale battery storage portfolio. The assets were developed by Kyon Energy, a TotalEnergies subsidiary, and TotalEnergies will remain operator.

The deal reflects growing institutional appetite for grid-scale storage, as Germany accelerates renewable deployment and seeks greater system flexibility. Battery infrastructure is increasingly viewed as critical to managing grid congestion and balancing intermittent power generation.

For TotalEnergies, the transaction allows capital recycling within its integrated power strategy while retaining operational control. For AllianzGI, the investment strengthens its exposure to energy transition infrastructure in its domestic market.

Édouard Jozan, Head of Private Markets at Allianz Global Investors, said the projects will “help reinforce the country’s energy resilience, accelerate the energy transition, and deliver long-term value for our clients,” highlighting the firm’s long-term infrastructure allocation strategy.

The €500m commitment underscores sustained capital flows into European storage assets as insurers and infrastructure funds compete for scalable energy transition platforms.

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