Investment of $3.8 Billion by Apollo in RWE Joint Venture to Extend German Power Network
Apollo and RWE Form Joint Venture to Expand Germany's Transmission Grid
Global alternative investment manager, Apollo Global Management, has announced a significant new joint venture with RWE, Germany's largest power producer. The partnership aims to invest €3.2 billion (approximately USD$3.8 billion) in expanding the transmission grid in Germany.
The joint venture will hold and fund RWE's 25.1% stake in Amprion, one of Germany's four Transmission System Operators (TSO). Amprion operates the transmission grid across seven German federal states, serving approximately 29 million people.
RWE plans to focus on its core activities of power generation and energy trading with this new partnership, while Apollo aims to further its investment activity in Europe, particularly in Germany, France, Italy, and the UK.
The investment program is aimed at enhancing critical energy infrastructure essential to facilitating the energy transition in Germany. It comes as Amprion is set to undertake a major investment program for grid expansion over the next decade.
The new joint venture does not disclose any specific grid expansion projects or timelines. However, it is part of Apollo's focus on delivering tailored capital solutions to leading global companies and essential infrastructure.
The new partnership aligns with RWE's strategy to grow its generation portfolio of renewables, batteries, and flexible generation assets. Apollo's commitment to this joint venture underscores its commitment to strong, lasting partnerships across both the private and public sectors.
It's worth noting that Apollo launched a $3 billion strategic partnership earlier this year with UK-based banking group Standard Chartered, focused on accelerating financing for infrastructure, clean transition, and renewable energy.
The new joint venture does not specify any other partners or investors involved. RWE will maintain operational control and a blocking minority stake in the joint venture to support its grid expansion program.
This development marks a significant step forward in Germany's efforts to modernise its energy infrastructure and accelerate its energy transition. With Apollo's substantial investment, the joint venture is poised to play a crucial role in powering homes and industry in Germany for years to come.
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