Paris: French energy major Total Energies has taken a significant step in expanding its European power portfolio by agreeing to acquire a 50% stake in Energetický a průmyslový holding (EPH)’s flexible power generation platform. Valued at €5.1 billion (approximately US$5.9 billion), the transaction represents one of TotalEnergies’ largest strategic investments in the region’s electricity market, underscoring its ambition to balance renewable energy expansion with stable, dispatchable power capacity.
The deal will establish a 50–50 joint venture between TotalEnergies and EPH, encompassing a diversified portfolio of generation assets across Italy, the UK, Ireland, the Netherlands, and France. The platform includes gas-fired and biomass power plants, along with battery storage systems, providing both reliable base-load capacity and flexible electricity supply.
In a distinctive feature of the agreement, the transaction is structured as an all-stock deal, giving EPH shares equivalent to around 4.1% of TotalEnergies’ capital, making the Czech energy group one of TotalEnergies’ largest shareholders. This approach allows both companies to align long-term interests while reducing immediate cash outflow.
For TotalEnergies, the acquisition strengthens its Integrated Power business, reinforcing its commitment to developing a “clean firm” energy portfolio. By combining flexible thermal generation with battery storage and renewable sources, the company aims to address the growing variability in Europe’s power supply, ensuring that demand is met reliably even as renewable penetration increases.
The acquisition also aligns with TotalEnergies’ broader capital recycling strategy, in which the company selectively sells and acquires assets to optimize its portfolio while maintaining operational control over key strategic assets. The collaboration with EPH allows TotalEnergies to diversify its energy mix and expand its reach across key European markets.
The joint venture delivers multiple advantages:
• Balancing renewable energy: By integrating gas, biomass, and battery assets, TotalEnergies enhances its capacity to provide flexible electricity, stabilizing grids amid fluctuations in wind and solar generation.
• Long-term strategic alignment: The partnership supports TotalEnergies’ net-zero by 2050 ambitions, combining low-carbon technologies with flexible generation to ensure a reliable energy transition.
• Financial and governance synergy: Granting EPH a meaningful equity stake fosters cooperation and shared responsibility, while the stock-based deal reduces TotalEnergies’ immediate cash expenditure.
EPH is a seasoned operator in Central and Western Europe, known for its expertise in thermal generation. Partnering with TotalEnergies expands its operational reach and embeds it within one of Europe’s largest integrated energy companies.
For TotalEnergies, the deal consolidates its presence in a European energy market under increasing pressure to decarbonize while maintaining supply security. Governments across the continent are accelerating renewable energy targets, and utilities must balance environmental goals with the need for reliable electricity. The EPH platform, with its flexible assets, positions TotalEnergies to meet this dual challenge effectively.
While strategically significant, the venture comes with challenges:
• Regulatory approval: Authorities in multiple countries will review the joint venture for competition and energy market compliance.
• Operational complexity: Coordinating a multi-country, multi-technology asset base demands meticulous management and integration.
• Market volatility: Fluctuating energy prices and evolving policy frameworks in Europe present ongoing risks.
• Long-term sustainability: Success depends on balancing continued renewable expansion with reliable, dispatchable power generation.
The €5.1 billion acquisition of a 50% stake in EPH’s power platform marks a bold strategic move for TotalEnergies, reinforcing its role as a key player in Europe’s energy transition. By combining flexible generation, battery storage, and renewable assets, TotalEnergies and EPH are positioning themselves to deliver reliable, low-carbon power, supporting both grid stability and climate goals. The deal reflects a forward-looking approach to energy investment, balancing innovation, environmental responsibility, and operational resilience.