Apollo, a global alternative investment manager, and German power producer RWE have announced the formation of a new joint venture. This collaboration will involve Apollo committing €3.2 billion (USD $3.8 billion) to support investments aimed at expanding Germany’s transmission grid. The joint venture, operationally managed by RWE, will encompass RWE’s 25.1% stake in Amprion, one of Germany’s four Transmission System Operators (TSO), responsible for the grid across seven federal states and serving approximately 29 million people.
Amprion is poised to embark on a significant investment programme over the next decade to enhance critical energy infrastructure, which is vital for Germany’s energy transition. This new partnership aligns with RWE’s strategy to augment its portfolio in renewables, batteries, and flexible generation assets, while concentrating on core activities in power generation and energy trading.
The joint venture is part of a series of large-scale energy transition investments by Apollo. Earlier this year, Apollo launched a $3 billion strategic partnership with UK-based banking group Standard Chartered, focusing on accelerating financing for infrastructure, clean transition, and renewable energy.
Apollo Partner Jamshid Ehsani emphasised the importance of this collaboration with RWE, stating that it will help fund long-term capital expenditure for critical grid expansion in Germany, powering homes and industries. He highlighted Apollo’s dedication to delivering tailored capital solutions to global companies and essential infrastructure, as well as its commitment to fostering strong partnerships across both private and public sectors. Apollo plans to further increase its investment activities in Europe, particularly in Germany, France, Italy, and the UK.
