TotalEnergies acquires Quadra Energy: A major move in Germany’s renewable electricity market

In a move that has the potential to reshape Germany’s renewable electricity market, TotalEnergies has confirmed a significant agreement with the Aloys Wobben Foundation (AWS). The deal centers around acquiring the entire share capital of the well-regarded German entity, Quadra Energy. Founded in 2012, Quadra Energy stands out with a “virtual power plant” amassing 9 GW, placing it among the top 3 renewable electricity production aggregators in Germany. Given that Germany holds the title as Europe’s largest power market, with the most substantial renewable growth, this acquisition carries immense strategic weight.

Quadra Energy’s Significant Role in Germany’s Power Market

Quadra Energy’s expertise lies in the aggregation of renewable electricity. A quick look back to 2022 reveals that the company procured production from nearly 5,000 wind and solar power plants, subsequently reselling an impressive 14 TWh to German resellers, wholesale markets, and end customers. Moreover, Quadra Energy has, since 2021, built a notable portfolio, comprising medium-term contracts for the acquisition of 2 TWh of renewable power, with sales channeled through corporate PPAs.

The Strategic Move: Why TotalEnergies Acquired Quadra Energy

This acquisition, still pending approval from appropriate authorities, is set to empower TotalEnergies, solidifying its integrated power endeavors within Germany. The move grants TotalEnergies access to Quadra Energy’s dedicated team of 40 and its groundbreaking weather-forecasting platform. These resources promise to amplify TotalEnergies’ trading capabilities in intraday markets, and also to widen its marketing purview, facilitating competitive corporate PPAs and pristine firm power offerings for German clientele. Additionally, Quadra Energy’s intricate familiarity with local renewable developers will likely smoothen TotalEnergies’ path in amplifying its renewable production capacity in Germany, further exemplified by its victorious bid for a 3 GW offshore wind concession in July.

Stéphane Michel, President Gas, Renewables & Power at TotalEnergies, conveyed his enthusiasm, stating, “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.” He further highlighted the acquisition’s alignment with the company’s growth trajectory in the German electricity market, emphasizing both production and trading aspects.