Allianz Global Investors (AllianzGI) announced that it has acquired a 51% stake in German battery storage platform Green Energy Storage Initiative (GESI), marking the firm’s second large-scale energy storage investment in the past few months.
Founded in 2023, GESI develops, constructs and operates high-performance, digitalized large utility-scale battery storage systems, designed to provide flexibility within energy systems supplied by intermittent renewable power sources such as wind and solar.
The company is currently developing three large-scale battery storage projects, which rank among the largest battery storage developments in Germany and are located at strategically critical nodes of the transmission network, with an aggregate grid connection capacity of around 2.6 GW. The projects benefit from the continued use of existing grid infrastructure, including former large power plant sites that have been decommissioned. The projects are scheduled to be commissioned by 2029. GESI also has an attractive project pipeline, according to AllianzGI.
GESI COO Jens Michael Wegmann said:
“Currently, green electricity worth billions of euros is lost every year because wind and solar power plants have to be curtailed or shut down. Allianz’s commitment demonstrates that energy storage is a key lever for better utilising the potential of renewables, reducing system costs, increasing security of supply and thereby improving the overall economic efficiency of the energy system.”
The transaction marks the second major battery storage investment this year by AllianzGI, following a recent agreement with French energy giant TotalEnergies for the acquisition of a 50% stake in a portfolio of 11 Battery Energy Storage System (BESS) projects currently under construction in Germany.
AllianzGI, which acquired the stake in GESI on behalf of Allianz insurance companies, said that the new investment further expands the company’s exposure to the large-scale battery storage sector, reinforcing its role in scaling system-critical infrastructure that enhances the stability and resilience of the energy system.
Ludovic Subran, Chief Investment Officer, Allianz Group, said:
“Modern storage solutions are a key component of an efficient and stable energy infrastructure. Demand for battery storage is therefore high and growing rapidly. This investment in GESI is already our second direct equity investment in battery storage in Germany, alongside the partnership with TotalEnergies that we announced at the beginning of March. We are delighted to be working with the established and highly experienced management team and the shareholders of GESI to further drive the development of large-scale battery storage in Germany.”
