Wedoany.com Report-Nov. 27, RWE, the German energy company, and U.S.-based Apollo Global Management announced on Wednesday that they have completed the formation of a joint venture focused on financing upgrades to Germany's electricity transmission network.

Electric power transmission pylon miniatures and RWE logo are seen in this illustration taken, December 9, 2022.

Under the agreement, Apollo will contribute 3.2 billion euros ($3.7 billion) in capital to support the expansion and modernisation of the country's power grid infrastructure.

The joint venture includes RWE's 25.1 percent shareholding in Amprion, one of Germany's four transmission system operators responsible for transporting high-voltage electricity across large regions.

"RWE retains operational control of the JV and continues to manage the Amprion stake while consolidating the joint venture in its financial statements," RWE stated in its announcement.

The partnership enables Amprion to access substantial additional funding required for major grid reinforcement projects. These investments are essential to accommodate growing volumes of renewable energy generation and to ensure stable electricity supply as Germany advances its energy transition.

The transaction provides RWE with fresh capital while allowing it to maintain strategic influence over a key infrastructure asset. At the same time, Apollo gains exposure to a regulated, long-term investment in European energy infrastructure.

Completion of the deal follows regulatory approvals and marks one of the largest recent commitments by an international investor to German grid development. The strengthened financial base is expected to accelerate planned network extensions, supporting the integration of more wind and solar power into the national system in the coming years.