Smart Energy Finances: EnBW sells quarter stake in TransnetBW

Leading this week’s Smart Energy Finances is the acquisition of 24.95% stake in German TSO TransnetBW by a consortium of banks, insurance companies and savings banks.

Also on the radar are an AI-based data analytics platform’s entry into the Nordic market, offering asset optimisation of renewable energy assets onto the grid, aiming to open favourable market conditions.

And across the ocean, in the US, energy efficiency and flexibility have driven the acquisition of an energy storage system provider by a smart home and load management developer.

EnBW sells quarter stake in TransnetBW

Südwest Konsortium has acquired 24.95% share in German Transmission System Operator (TSO) TransnetBW, which operates the electricity transmission system in Baden-Württemberg, from energy company EnBW.

According to a joint press release by EnBW, Südwest and TransnetBW, the consortium bought the minority stake in the TSO after a multi-stage bidding process.

Südwest Konsortium consists of more than 30 savings banks, banks, insurance companies and corporations from Baden-Württemberg, led by insurance group SV SparkassenVersicherung.

With the support of LBBW Corporate Finance as a financial advisor, the investment held by the Südwest Konsortium members was managed by derigo GmbH & Co. KG, an investment management company with experience in the infrastructure sector.

Have you read:
TransnetBW & Tesla: Germany’s redispatch ready for flexibility
Germany’s TSOs to tap industrial flexibility

With the transaction, EnBW completes an important part of the partial sale process, which was officially announced in February 2022.

According to law firm White & Case, which oversaw the transaction, it was agreed in advance with state-owned KfW Bank that it would receive a right of first refusal on the second of the two minority shares offered.

Following the sale of the second tranche, EnBW will remain the majority shareholder with just over 50% of the shares.

TransnetBW and EnBW referenced the grid’s status in Germany as a key driver behind the sale:

“To achieve the German government’s climate targets by 2030, implementing the energy transition will require around €600 billion ($644.1 billion) in investment…€126 billion ($135.3 billion) of this will be accounted for by new power lines and power line modernisation alone.

“The Grid Development Plan 2035 (2021) identifies around €10 billion ($10.7 billion) in investment needed for TransnetBW alone, primarily for the major projects SuedLink and Ultranet. The future shareholders will meet TransnetBW’s financing needs in proportion to their holding.”

According to Reuters, which claims the sale valued €1.1 billion ($1.2 billion), with the sale EnBW’s stock rose 1.6%.

EnBW is one of the largest energy companies in Germany and Europe, supplying around 5.5 million customers with electricity, gas, water and services and products in the areas of infrastructure and energy.

From 2023 to 2025, the company is expecting to invest around €14 billion ($15 billion), mostly in the accelerated implementation of the energy transition.

AI data analytics platform for grid assets enters Nordic market

Trailstone Group, a US-based energy and technology company, has announced its entry into the Norway, Sweden, Denmark and Finland markets.

The company offers renewable energy risk management, asset optimisation and trading services and for the last 10 years has provided similar services for over 18GW renewable energy assets across the EU, UK and US, and recently began offering similar services in Japan.

According to the company, a major driver of the decision to expand into the Nordic market is the number of market reforms that will be implemented in 2023 and 2024 to support the continued development of renewables and more closely integrate the Nord Pool with European power markets.

Expected reforms include flow-based market coupling, the introduction of flexibility markets and the shift to 15-minute resolution in intraday markets.

Smart Energy Finances:
SSEN’s sustainability RCF & $50mn for Genus Power’s smart metering
Eni’s €2.2bn share buyback programme and grid smartening for investments

Ante Pogacic, global head of power and renewables at Trailstone said: “Renewable asset owners and developers selling power into Nord Pool need solutions such as our AI-enabled optimisation platform to manage increasing market complexity and we’re excited to extend our services and experience.”

Trailstone’s optimisation platform uses weather models, data analytics and AI to better predict renewable energy supply and optimise returns for asset owners.

The company’s risk management and trading teams use the platform to manage imbalances caused by weather related production risks, lowering the barriers to entry for asset developers and enabling the deployment of more wind and solar generation.

At the grid level, the company cites the use of the platform in improving the effectiveness and efficiency with which renewables are managed and assets can connect to the grid, lowering reserve requirements and costs.

Savant Systems acquires POMCube

In the US, Savant Systems, Inc., smart home and flexible load management system developer, announced that it has acquired POMCube, Inc., which deploys energy storage systems.

For nearly 10 years, POMCube has been developing and deploying energy storage systems that aim to help facilitate the use of clean energy alongside battery backup in homes and commercial locations throughout North America and Asia.

Moving forward, POMCube will function under the Savant brand and management.

With the acquisition, Savant will enhance its current power system with its newly acquired technology.

According to Savant, their software platform allows for easy monitoring, control and automation of circuits, improving efficiency, both in terms of energy stored and cost.

The complete Savant Power System and components are eligible for tax credits in the US, as well as other government subsidies via the Inflation Reduction Act (IRA).

Savant is currently investigating opportunities under current government programmes to manufacture inverters and backup batteries domestically within the US.

For the latest in finance and investment announcements coming out of the energy industry, make sure to follow Smart Energy Finances Weekly.

I will also be attending European Sustainable Energy Week in Brussels from 20 to 22 June. Will I see you there?

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

Follow me on LinkedIn