TotalEnergies expands renewable strategy with Quadra Energy purchase

TotalEnergies, in a strategic move to solidify its renewable energy footprint in Europe’s largest power market, has acquired German-based Quadra Energy from the Aloys Wobben Foundation (AWS). Established in 2012, Quadra Energy is renowned for its nine gigawatt  (GW) “virtual power plant” and ranks among Germany’s top three renewable electricity aggregators.

Focused on consolidating renewable energy sources, Quadra Energy purchased power from approximately 5,000 wind and solar installations in 2022, subsequently supplying 14 terawatt hour (TWh) to German resellers and the wholesale market. Since 2021, Quadra has cultivated a portfolio of medium-term contracts, which involve purchasing two TWh of renewable electricity and reselling it through corporate power purchase agreements (PPAs).

Subject to regulatory approvals, this acquisition promises to augment TotalEnergies’ integrated energy approach in Germany. The 40-strong team at Quadra Energy, combined with their advanced weather-predicting platform, will bolster TotalEnergies’ intraday market trading prowess. Furthermore, the acquisition will facilitate TotalEnergies in offering competitive corporate PPAs and clean power to German clients. Leveraging Quadra Energy’s familiarity with local renewable developers, TotalEnergies is poised to upscale its renewable production in Germany, aligning with its recent success in obtaining a huge offshore wind concession in July.

Stéphane Michel, TotalEnergies’ president of Gas, Renewables & Power, remarked on the acquisition’s significance: “We’re excited to bring Quadra Energy onboard. Their team will be instrumental in our German electricity market endeavors. This acquisition accelerates our Integrated Power initiatives in Germany, which boasts a robust electricity market. Our commitment to achieving a 12% ROACE [return on average capital employed] by 2028 in this segment is further bolstered by this agreement.”

TotalEnergies, in its commitment to achieving net-zero emissions by 2050, is creating a premium, cost-effective portfolio encompassing renewables and flexible assets to provide its clientele with clean, steady power. In 2022, the company generated more than 33 TWh of electricity, boasting a gross renewable electricity production capacity of 17 GW. Ambitiously, TotalEnergies aims to amplify its power output to exceed 100 TWh by 2030, aspiring to rank amongst the global top five in wind and solar electricity production.