TotalEnergies strikes €5.1bn deal for half of EPH’s flexible power arm

French energy major TotalEnergies has agreed to acquire a 50% stake in Czech group EPH’s flexible power generation platform in Western Europe, in a €5.1 billion all-stock transaction in line with its larger goal of becoming one of the region’s leading integrated electricity players.

The move will see EPH, majority-owned by Czech billionaire Daniel Křetínský, receive TotalEnergies shares worth the same amount, making it one of the French company’s largest shareholders with about 4.1% of its capital.

The agreement deepens TotalEnergies’ shift toward balancing renewable energy capacity with flexible power systems that can meet rising electricity demand from energy-intensive sectors, including expanding data-centre infrastructure.

The company said the partnership with EPH marks a significant advance in its Integrated Power strategy, aimed at delivering reliable and low-carbon energy across major European markets.

Strategy built around renewables and flexible generation

“This acquisition marks another major milestone in TotalEnergies’ strategy to build an integrated electricity player in Europe,” Patrick Pouyanné, Chairman and CEO of TotalEnergies.

“By joining forces with EPH as part of a long-term partnership, we are accelerating the implementation of our Integrated Power strategy and strengthening our ability to provide reliable, competitive, and low-carbon energy to our customers by leveraging the complementarity of our renewable and flexgen portfolio,” he said.

By combining its renewable energy pipeline with EPH’s conventional and flexible generation assets, TotalEnergies aims to improve its ability to manage intermittent renewable output while stabilising electricity supply.

Under the deal, the companies will form a 50-50 joint venture overseeing more than 14 GW of flexible generation assets either in operation or under construction.

The portfolio includes gas-fired power stations, biomass plants and battery storage assets, with secured capacity revenues accounting for around 40% of gross margin.

This revenue structure, TotalEnergies said, provides a stable foundation for expanding its power business in the region’s most profitable markets.

Italy represents the largest share of the portfolio, with 7.5 GW of capacity across operating, under-construction and planned projects.

The UK and Ireland together contribute 7.1 GW, while the Netherlands adds 3.6 GW tied to gas-fired plants strategically located to support demand from neighbouring Germany.

France contributes 1.1 GW, largely through battery projects currently being built.

Roughly 5 GW of additional projects remain under development and will be prioritised through the joint venture as both companies look to accelerate flexible generation growth.

Cash flow lift and revised capex guidance

TotalEnergies expects the transaction to deliver immediate benefits to its financial performance.

Over the next five years, it anticipates an increase of about $750 million per year in available cash flow — an amount the company says far exceeds the additional dividend requirement tied to the newly issued shares.

The deal is expected to be accretive to free cash flow per share from the outset and will bring forward the Integrated Power segment’s positive cash contribution to 2027, earlier than previously forecast.

The company also revised its capital expenditure plans, reducing annual net capex guidance by $1 billion to $14–16 billion per year for 2026–2030.

Of that, around $2–3 billion annually will be directed toward the Integrated Power segment, allowing TotalEnergies to maintain its target of generating 100–120 TWh of electricity by 2030.

Completion of the transaction, which is subject to regulatory approvals, is expected by mid-2026.

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