TotalEnergies has signed an agreement to acquire the entire share capital of Kyon Energy as part of its development into an integrated energy supplier in Germany. Kyon Energy is one of the developers of battery storage systems in Germany and was launched in 2021 by its three founders. The transaction consists of an upfront payment of EUR 90 million and further payments linked to the achievement of certain development targets.
Since its inception, Kyon Energy has developed projects with a capacity of 770 MW and very competitive connection costs, of which 120 MW are already in operation, 350 MW are under construction and 300 MW are ready for construction. In addition, Kyon Energy’s portfolio includes a 2 GW pipeline of advanced stage projects.
Thanks to the expertise of Kyon Energy’s management and employees, TotalEnergies will develop, build and operate these projects as part of its integrated energy strategy. This new acquisition follows the successes of 2023 in Germany – including the award of a maritime concession for the development of a 3 GW offshore wind farm, the acquisition of renewable energy aggregator Quadra Energy and the award of a contract for the installation and operation of 1 100 high-power electric vehicle charging stations – and strengthens TotalEnergies’ ability to offer reliable and competitive energy to its German customers.
Battery storage systems contribute to the resilience of the German electricity system, help to solve bottleneck problems, provide additional flexibility to the German electricity grid and ultimately support the rapid expansion of renewable energies in Germany.
“I would like to welcome the Kyon Energy teams to TotalEnergies. The acquisition of this company, which is one of the market leaders, is a key element for our presence in the German electricity market, which is the largest in Europe,” said Stéphane Michel, President Gas, Renewables & Power at TotalEnergies. “This acquisition will allow us to accelerate the development of our Integrated Power activities in Germany, both in the production, trading, aggregation and marketing of low-carbon electricity available 24 hours a day. It will also contribute to our profitability target of a 12% return for this business segment by 2028.”
“This partnership with TotalEnergies represents an important moment for Kyon Energy as we aim to become one of the flexibility providers in Europe. By joining forces, we are strengthening our position in the German electricity market and contributing directly to the transition to a more sustainable system,” said Adrian Kapsalis, CEO of Kyon Energy.
The takeover is still subject to approval by the relevant authorities.
TotalEnergies and electricity
TotalEnergies has set itself the goal of achieving net-zero electricity generation by 2050 and is therefore building a world-class, competitive portfolio that combines renewable energies (solar energy, onshore and offshore wind power) and flexible plants (gas and steam turbines, electricity storage) to supply its customers with clean electricity. At the end of 2023, TotalEnergies’ gross installed capacity for electricity generation from renewable energies amounted to 22 GW. TotalEnergies will further expand this area to reach 35 GW by 2025 and net electricity generation of more than 100 TWh by 2030.