RWE has formed a joint venture (JV) with Apollo Global Management to fund its 25.1% stake in German transmission system operator, Amprion.
On behalf of its managed funds and entities, US asset manager Apollo will contribute €3.2bn ($3.7bn) upfront in equity to the JV.
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The German utility will channel these funds into Amprion through the JV for grid upgrades.
Amprion is one of the four transmission system operators (TSOs) in Germany, responsible for managing the transmission grid across seven federal states, meeting the needs of around 29 million people.
The TSO has outlined plans for substantial investments in grid expansion over the next decade, which are crucial for advancing Germany’s energy transition.
With Apollo’s investment, RWE aims to strengthen its commitment to energy infrastructure in Germany.
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By GlobalDataAmprion has been viewed as a promising investment opportunity, providing stable returns from its regulated asset base.
The collaboration between RWE and Apollo is based on the expectation that future investments will yield favourable returns for equity investors, ensuring that the necessary capital for RWE’s stake is available to support Amprion’s investment initiatives.
RWE will maintain operational control of the JV.
It will consolidate the venture in its financial reports, with dividends from Amprion to be distributed between RWE and Apollo.
Apollo will utilise its capital and expertise in infrastructure investments to serve as a long-term partner for RWE.
The deal is set for completion in the fourth quarter (Q4) of 2025, contingent on regulatory approvals and standard closing conditions.
Once completed, the JV will focus on deploying equity in accordance with Amprion’s grid expansion plans.
In April this year, RWE ceased work on its US projects due to policy changes by the Trump administration.
