French oil and gas giant TotalEnergies has entered an agreement with the Aloys Wobben Foundation to acquire Quadra Energy, a German aggregator of renewable electricity, for an undisclosed amount.
Established in 2012, Quadra Energy is one of the top aggregators in the German market, with 9GW of capacity in the form of a "virtual power plant".
In 2022 the company purchased electricity from 5,000 wind and solar plants and then resold 14TWh to resellers and customers on German wholesale markets.
Since 2021 it has developed a portfolio of medium-term contracts to purchase 2TWh of renewable energy. This energy will be sold under corporate power purchase agreements (PPAs).
The transaction awaits the green light from the relevant authorities and is expected to improve TotalEnergies’ position as an integrated power business in Germany.
Quadra Energy’s workforce of 40 will be absorbed by TotalEnergies, along with its weather forecasting platform.
These will help bolster its trading capacity on the intraday markets and broaden its marketing activities to bring competitive PPAs for its German corporate customers.
The knowledge gathered by Quadra Energy in terms of local renewable energy developers can support TotalEnergies in the development of its own renewable energy portfolio in the country.
TotalEnergies gas, renewables and power president Stéphane Michel stated: “We are pleased with the acquisition of Quadra Energy, and I would like to welcome their teams, who will be an essential component of our presence in Germany’s electricity market.
“This agreement will enable us to speed up the development of our integrated power activities in the country – whose electricity market has particularly attractive fundamentals – in both production, trading, aggregation and marketing of corporate PPA and clean firm power.
“This acquisition thus contributes positively to our profitability target of 12% return on average capital employed by 2028 for this business segment.”
In July 2023, TotalEnergies secured two marine concessions from the Bundesnetzagentur (German Federal Network Agency).
One will be located in the North Sea and the other in the Baltic Sea. The two concessions have the potential to generate 3GW of clean power annually.
