TotalEnergies Anchors European Grid Stability with €5.1 Billion EPH Acquisition
Paris, Sunday, 8 February 2026.
TotalEnergies is creating a 14 GW flexible power giant through a €5.1 billion stake in EPH. This strategic move secures critical infrastructure to balance Europe’s renewable energy transition.
Structuring the Deal
On February 7, 2026, TotalEnergies (NYSE: TTE) finalized a definitive agreement to acquire a 50% stake in the flexible power assets of EPH (Energetický a průmyslový holding), a transaction valued at €5.1 billion [1]. Rather than a cash outlay, the French energy major has opted for an all-share transaction, agreeing to issue approximately 95.4 million new shares to EPH [1]. This issuance will grant the Czech energy group a stake of roughly 4.1% in TotalEnergies’ capital, signaling a long-term alignment between the two entities [1]. The deal is expected to result in a joint venture fully operational by mid-2026, subject to customary regulatory approvals [1].
Scale and Strategic Scope
The newly formed joint venture will manage a massive portfolio, combining over 14 GW of gross capacity currently in operation or under construction, with an additional 5 GW in the development pipeline across Western Europe [1]. This infrastructure is primarily focused on “flexible” power—gas-fired plants and storage facilities capable of rapid response—which is essential for maintaining grid stability as intermittent renewable energy sources grow [1]. The partners have set an ambitious operational target for the platform, aiming for a net output of 20 TWh per year by 2030 [1]. While operations and maintenance will be pooled to maximize efficiency, TotalEnergies and EPH will maintain distinct commercial strategies, allowing each to independently optimize the dispatch of their share of the power generation [1].
Securing the Gas-to-Power Value Chain
This acquisition represents a calculated vertical integration strategy for TotalEnergies, effectively strengthening its “gas-to-power chain” [1]. By controlling the power generation assets, the company creates a guaranteed sink for its upstream gas operations. Specifically, the acquisition allows TotalEnergies to channel approximately 2 million tonnes of Liquefied Natural Gas (LNG) per year into this new fleet, with a focus on markets in the Netherlands and Italy [1]. The envisioned value chain is comprehensive: LNG cargoes will arrive at terminals, flow through pipelines to these flexible plants, and generate electricity to be traded on wholesale markets or sold directly to industrial and retail customers [1].
Partnership Dynamics and Market Risks
The deal brings TotalEnergies into a closer orbit with Daniel Křetínský, the founder of EPH, who has indicated a desire to remain a stable shareholder in the French giant [1]. EPH, founded in 2009, has grown aggressively by acquiring thermal and gas infrastructure across Europe, including assets from major players like EDF, E.ON, and Uniper between 2013 and 2019 [1]. However, the venture is not without long-term risks. The partners must navigate a complex landscape involving potential policy shifts regarding gas phase-outs, rising carbon prices, and the eventual competition from cheaper long-duration storage technologies expected to mature in the 2030s [1].
Complementary Renewable Expansion
While fortifying its flexible power capabilities, TotalEnergies continues to expand its renewable portfolio, illustrating a dual-pronged approach to the energy transition. Just days prior to the EPH announcement, on February 5, 2026, the company signed two long-term contracts to supply clean power to Airbus [2]. Starting in 2027, TotalEnergies will provide 3.3 TWh of renewable electricity to Airbus sites in Germany and the United Kingdom, drawn from new 200 MW renewable assets [2]. This agreement is designed to cover approximately half of the electricity needs for the targeted Airbus facilities, further integrating TotalEnergies into the decarbonization strategies of major industrial clients [2].