Global energy major TotalEnergies has signed a major strategic deal with Czech energy group EPH (Energetický a průmyslový holding) to create a 50–50 joint venture (JV) that will manage, develop, and operate one of Europe’s largest “flexible power generation” platforms. The platform includes gas-fired power plants, biomass units, and modern battery-storage systems across several European countries.
The total portfolio value is estimated at €10.6 billion, and TotalEnergies will issue €5.1 billion worth of new shares to EPH for a 50% stake in these assets.
This JV marks one of the most significant steps in Europe’s clean-power evolution, where battery storage is now becoming an essential part of large energy portfolios.
Deal Structure and Significance
TotalEnergies will issue 95.4 million new shares to EPH, making EPH one of its largest shareholders with nearly 4.1% ownership. The share valuation is based on the 20-day volume-weighted average share price (VWAP), which came to €53.94 per share.
Once the JV becomes operational, both companies will manage the assets jointly, but revenue will be shared under a tolling arrangement, meaning each company will market and sell its share of electricity separately.
The deal still requires regulatory approvals and is expected to be completed by mid-2026.
A 14 GW Flexible Power Portfolio
The JV will control more than 14 gigawatts (GW) of operating and under-construction energy capacity. The goal is to expand this portfolio further with a development pipeline of around 5 GW.
Key geographic distribution:
Italy – 7.5 GW
- 3.7 GW operational
- 2.4 GW under construction
- 1.4 GW in development
United Kingdom & Ireland – 7.1 GW
- 5 GW gas + biomass
- 0.4 GW battery storage under construction
- 1.7 GW in pipeline
Netherlands – 3.6 GW
- 2.6 GW gas
- 0.2 GW batteries under construction
- 0.8 GW in pipeline
France – 1.1 GW
- 100 MW batteries under construction
- 1 GW in development
This combination makes the JV one of the most powerful flexible-power operators in Europe.
Why Battery Storage Is a Big Deal
Battery storage is emerging as one of the most crucial components of the future power grid. Adding large battery systems into this JV strengthens its ability to handle:
1. Power Demand Fluctuation
Battery systems can instantly supply electricity when renewable sources like solar and wind drop. This improves stability in a grid increasingly dependent on renewables.
2. Fast Response Needs
Gas plants take time and money to start and stop. Batteries can deliver instant response, reducing operating costs and improving efficiency.
3. Rising Data-Center and AI Power Demand
Data centers and AI clusters are becoming huge electricity consumers. They often create sudden spikes in demand.
Flexible gas generation + battery systems make the JV capable of supplying “clean firm power” — reliable power with low emissions.
Strategic Benefits for TotalEnergies
The deal supports TotalEnergies’ long-term strategy to transform from an oil & gas company into a major integrated power supplier.
Financial Impact
- Expected increase in free cash flow by $750 million per year, over the next five years.
- Capital expenditure (CapEx) for 2026–2030 reduced by $1 billion annually, now targeted at $14–16 billion per year.
Market Strengthening
The JV will strengthen TotalEnergies’ position in:
- Power trading
- European electricity markets
- Clean and flexible power supply
- Battery storage infrastructure
Why EPH Benefits From the Deal
EPH, led by billionaire Daniel Křetínský, is one of Europe’s biggest independent power producers. By exchanging assets for equity in TotalEnergies, EPH gains:
- A strong long-term partnership with a global energy leader
- A foothold in the fast-growing electricity and battery storage market
- A stable shareholder position in TotalEnergies
EPH continues to expand its role in Europe’s energy transition, especially in gas-based and flexible generation.
Impact on Europe’s Energy Transition
This JV comes at a time when Europe is rapidly increasing renewable energy production. However, renewables alone cannot guarantee stable electricity because of weather dependence. Therefore, Europe needs:
- Flexible gas-fired plants
- Battery storage
- Faster balancing systems
The JV directly supports all three.
Key benefits to Europe:
- Better stability during renewable fluctuations
- Support for the massive electricity needs of AI/data centers
- Reduction in blackout risks during high demand periods
- Faster shift toward clean, firm, and reliable power
This makes the JV a major contributor toward Europe’s long-term climate and energy-security goals.
Challenges and Risks
Despite strong potential, there are challenges:
1. Regulatory Approval
Energy regulators in the EU, UK, Italy, France, and the Netherlands must approve the deal.
2. Carbon Emission Policies
If Europe tightens restrictions on natural gas, gas-to-power plants may face future pressures.
3. Market Volatility
Because EPH now owns TotalEnergies shares, fluctuations in the market can affect their long-term returns.
4. Competition
Other global energy companies like Shell, BP, and RWE may introduce competing models.
What to Watch Next
- Regulatory decisions — approvals expected by mid-2026
- Battery project timelines — especially in France, Netherlands, UK
- JV operational roadmap — which plants come online first
- Financial updates — how much cash flow the JV adds
- Policy changes — especially concerning natural gas and carbon emissions
Outcome
The TotalEnergies–EPH joint venture is a powerful combination of flexible gas-fired generation and advanced battery storage systems. It strengthens Europe’s capacity to manage renewable fluctuations, supports increasing electricity demand from digital and AI infrastructures, and improves energy security.
For TotalEnergies, this is a bold step toward becoming a leading integrated power company. For EPH, it offers long-term stability and expansion in clean and flexible electricity.
Overall, this JV is expected to reshape Europe’s power landscape and accelerate the continent’s clean-energy future.
