TotalEnergies Considers Divesting Stake in German BESS Projects
TotalEnergies is reportedly planning to sell about 50% of its stake in a portfolio of battery energy storage system (BESS) projects in Germany, developed through its subsidiary, Kyon Energy.
Background on Acquisition and Projects
TotalEnergies acquired the German BESS developer Kyon Energy in January 2024 for approximately €90 million (US$105 million). Just over a year later, the company made a final investment decision and began constructing six BESS projects totaling 321MW capacity.
Current Sale Considerations
According to Bloomberg and a source familiar with the matter, TotalEnergies is seeking an investor for a ready-to-build portfolio of around 800MW. The company is also open to selling a stake in Kyon Energy's operating company itself.
The source explained that this sale is likely driven by TotalEnergies’ internal strategic decisions rather than changes in the broader market.
“It’s common for Total and other big players to sell down assets once they reach a certain maturity,” the source said.
Market Context
Germany is regarded as Europe’s most attractive energy storage market due to its robust wholesale energy market, making this an opportune moment for TotalEnergies to consider such a sale.
Author's summary: TotalEnergies is exploring the sale of about half its German BESS portfolio as part of an internal capital recycling strategy amid a favorable energy storage market.
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