German energy giant increases its stake in Amprion, prepares to modernize transmission grid

German company RWE is increasing its stake in Amprion, one of Germany’s four transmission system operators. According to RWE, the aim is to support the modernization of Germany’s transmission grid.

Energy giant RWE is making this investment to prepare itself to play an even more significant role in the transformation of Germany’s energy sector. As reported by RenewablesNow, the company announced an investment of 3.6 billion euros that will strengthen RWE’s position in one of Germany’s transmission system operators.

Amprion operates the transmission system responsible for supplying electricity to approximately 29 million people across Germany. According to RWE, the investment signals growing confidence in the long-term need to expand the transmission grid, particularly in response to increasing renewable energy capacity. The company also justifies the investment by pointing to continually growing electricity demand and portfolio diversification.

RWE and US investment firm Apollo Global Management currently jointly own 25.1% of Amprion through a separate joint venture. The remaining 74.9% is held by M31 Beteiligungsgesellschaft, a consortium of energy companies and institutional investors. Under a new investment agreement, RWE will acquire stakes from several M31 shareholders, giving it an indirect economic interest equivalent to 55% of Amprion. The company’s formal ownership structure will remain unchanged.

Investment worth tens of billions of euros

The investment comes at a critical time for Germany’s energy sector. Amprion plans to invest up to 42.1 billion euros in expanding and modernizing its transmission grid between 2026 and 2030. It will therefore need the funding. The planned investments are considered essential for integrating growing volumes of renewable energy, improving the reliability of the transmission grid, and supporting the electrification of transport, heating and industry.

RWE has earmarked an additional 4 billion euros to finance the investments, on top of the approximately 2.5 billion euros it has already committed through 2031. The company intends to fund this commitment from existing resources and through a capital-raising program that includes issuing new shares and selling treasury shares. Major shareholders, including the Qatar Investment Authority and Norges Bank Investment Management, have already agreed to participate and committed to purchasing shares worth approximately 1 billion euros. RWE’s management views the transaction as a strategic expansion of its broader growth plans.

Alongside its investments in the grid, the company continues to pursue expansion in renewable energy, battery storage and flexible power generation. The German energy giant has confirmed its intention to invest a total of 35 billion euros by 2031 and increase its global installed capacity to 65 GW. The transaction is expected to close in the third quarter of 2026. Amprion will continue to operate independently under its existing management and brand.